The filing of bankruptcy triggers the
automatic stay which stops all creditors from any action to
collect their claim including foreclosure.
In Chapter 7, the stay lasts only as long as the property
is not abandoned by the trustee, as either valueless to the
estate or as exempt, or until the case is closed.
A creditor secured by the house can seek relief from the
stay to complete the foreclosure if there is danger that
the secured claim will become greater than the value of the
security during the bankruptcy. Since the creditor's lien
is not eliminated by the bankruptcy, Chapter 7 provides
temporary relief from foreclosure, but no lasting solution.
In contrast, in Chapter 13 the stay lasts as long as the
case is pending. Chapter 13 is designed to allow debtors to
cure defaults in their home mortgages by paying the
arrearage over as long as 3 to 5 years.