Time is running out. When you’re facing foreclosure in Missouri, every day counts. The moment you file bankruptcy, federal law kicks in an automatic stay that immediately halts all foreclosure proceedings, including the scheduled sale of your home.
Think of it this way: if you act before the foreclosure sale happens, bankruptcy can save your home. Once your property sells at auction, it’s too late.
How Fast Does Foreclosure Move in Missouri?
Missouri is a non-judicial foreclosure state, meaning your lender doesn’t need to go through the court system. This process moves quickly.
Here’s the timeline you’re facing if you fall behind on mortgage payments:
- You must be at least 120 days delinquent before the lender can officially start foreclosure. This comes from federal lending requirements.
- Once the lender decides to proceed, it must send you written notice at least 20 days before the foreclosure sale.
- The lender must also publish notice of the foreclosure sale in the local newspaper.
- From initial notice to the courthouse steps, you typically have 40 to 60 days to take action.
Missouri law requires: At least 20 days’ advance notice by certified mail under Mo. Rev. Stat. § 443.325 and newspaper publication under Mo. Rev. Stat. § 443.320.
The bottom line is simple: Missouri foreclosures move fast. That 40 to 60-day window is narrow, which is why acting immediately when you receive a foreclosure notice matters.
Why Bankruptcy Stops the Foreclosure Sale
When you file for bankruptcy, federal law instantly activates what’s called an automatic stay. This is codified in 11 U.S.C. § 362(a) and it applies to every bankruptcy filing.
The automatic stay is a court order that halts nearly all debt collection activities the moment your petition is filed. Your lender cannot continue with the foreclosure sale if you file before that sale occurs.
Here’s what happens in practice: Once you file your bankruptcy petition with the federal bankruptcy court, creditors must immediately stop all collection efforts or risk court penalties. Your lender’s attorney receives notice of the filing, and the scheduled foreclosure sale must be halted. The automatic stay remains in effect throughout your bankruptcy case unless the court grants your lender permission to proceed.
The automatic stay offers temporary protection in Chapter 7 bankruptcy, which usually lasts several months. In Chapter 13 bankruptcy, the protection continues as long as your repayment plan is active, typically three to five years, provided you stay current on your payments.
Chapter 7 Bankruptcy – Temporary Relief
Chapter 7 bankruptcy is often called liquidation bankruptcy. Some of your assets may be sold, and many of your unsecured debts are discharged. For foreclosure purposes, the key point is that the automatic stay temporarily stops the foreclosure while your case is active.
During this period, which usually lasts several months, you have time to work with your lender on possible options such as a loan modification or short sale. If your finances allow, you might also catch up on missed payments.
When your Chapter 7 case ends, the automatic stay is lifted. If you have not reached an agreement with your lender, the foreclosure process can resume. Chapter 7 does not provide a way to repay mortgage arrears over time, so it rarely helps homeowners who want to keep their homes.
Important note: Missouri’s homestead exemption allows you to protect up to $15,000 in home equity. If your equity is higher, that amount may be available to pay creditors, which could put your home at risk.
Chapter 13 Bankruptcy – Save Your Home
Chapter 13 bankruptcy is usually the best option if you want to keep your home and stop foreclosure. You propose a repayment plan lasting three to five years that shows how you’ll catch up on missed mortgage payments while continuing regular monthly payments.
How Chapter 13 Protects Your Home:
- Extended automatic stay – The stay lasts for the entire duration of your plan; your lender cannot foreclose as long as you make monthly payments to the court trustee
- Repayment plan process – The court approves your plan outlining how you’ll pay creditors from your income; you make one monthly payment to the trustee who distributes it according to the court-approved plan (usually deducted automatically from your paycheck)
- Mortgage priority – Mortgage payments take priority; mortgage arrearages (back payments) are paid through your plan along with regular monthly mortgage payments
- Plan completion – After successfully completing the three to five-year plan, remaining eligible debts are discharged
- Lien stripping benefit – In some cases, you may eliminate a junior lien or second mortgage through lien stripping, further reducing your debt.
Missouri Foreclosure Laws You Need to Understand
Missouri has streamlined foreclosure laws that move quickly. Here’s what you need to know:
Mo. Rev. Stat. § 443.325 requires your lender to mail foreclosure notice to you at least 20 days before the sale by certified mail.
Mo. Rev. Stat. § 443.320 requires the lender to publish notice in a newspaper. For larger cities with 50,000+ residents, publication must occur 20 times through the sale date. For smaller areas, publication must occur for four consecutive weeks with the final publication at least the week before the sale.
After the foreclosure sale: If the lender is the winning bidder, you have one year to redeem the property under Mo. Rev. Stat. § 443.410. However, redemption requires strict compliance with procedural requirements and rarely succeeds. Filing bankruptcy before the sale is far more practical.
If someone else buys the property at auction, you lose your right to redeem.
What You Should Do When You Get a Foreclosure Notice
Don’t panic and don’t delay. The moment you receive a foreclosure notice, you have limited time to act.
If you want to keep your home, file Chapter 13 bankruptcy before the foreclosure sale date. The automatic stay will stop the sale and protect your home.
Important consideration: If you’ve filed a bankruptcy case in the past year, the automatic stay in a new filing only lasts 30 days. You’ll need to show changed circumstances to extend it. This is why getting professional help early matters.
You’ll need to gather financial documents: recent pay stubs, last year’s tax returns, bank statements, and a complete list of all debts and creditors. An attorney can help you complete the required bankruptcy forms accurately.
After filing, you’ll attend a Meeting of Creditors. Despite its name, this is usually straightforward. The bankruptcy trustee reviews your financial situation and your Chapter 13 plan. Your lender may or may not attend, but the stay is already protecting your home.
Why Timing Is Everything
The deadline to file bankruptcy before your foreclosure sale is fixed and cannot be extended. Once the sale occurs, you’ve lost the opportunity to use bankruptcy to save your home.
Redemption after the foreclosure sale is a theoretical option but requires posting a bond and navigating complex procedures. Very few homeowners successfully redeem their properties. Bankruptcy before the sale is the practical solution.
Some homeowners hope they can file bankruptcy after the foreclosure sale to deal with a deficiency judgment. While bankruptcy after the sale can help with the deficiency, it doesn’t get your home back.
Key Takeaways
- Missouri foreclosures can happen in 40 to 60 days from the initial notice to the courthouse auction
- Filing bankruptcy immediately triggers an automatic stay that stops all foreclosure proceedings
- Chapter 7 bankruptcy provides temporary protection but usually doesn’t help you keep your home
- Chapter 13 bankruptcy allows you to catch up on mortgage payments through a court-approved plan while keeping your home
- You must file bankruptcy before the foreclosure sale occurs for this to work
- Missouri’s homestead exemption protects up to $15,000 in home equity
- Getting legal help immediately is essential because timing determines whether you can save your home
Frequently Asked Questions
What is the cost to file bankruptcy?
Bankruptcy filing fees are set by the federal courts and may change over time. The fee for a Chapter 13 case is about $300. Attorney fees vary, but many firms offer flat rates or allow payments through your Chapter 13 plan. If cost is a concern, ask your attorney about payment options or installment plans.
Will I lose my house if I file Chapter 13?
No. Chapter 13 is specifically designed to help homeowners keep their homes while catching up on missed payments. As long as you can afford to make your plan payments and stay current on regular mortgage payments, you keep your home.
I’ve already received the notice of sale date. Can I still stop the foreclosure?
Yes, if the sale hasn’t happened yet. You can still file bankruptcy, and the automatic stay will stop the sale. However, you need to act immediately. Waiting even a few days can make the difference.
What happens to my mortgage debt in Chapter 13?
Your mortgage remains a secured debt. You continue making your regular monthly mortgage payment directly to your lender. Any back payments are included in your Chapter 13 plan. The plan ensures you get caught up on arrearages while keeping your home.
Will bankruptcy hurt my credit?
Bankruptcy appears on your credit report for seven years, but its effect weakens over time. Consider this: if you lose your home to foreclosure, your credit takes a major hit too. After completing a successful Chapter 13 plan, you’ll have demonstrated three to five years of on-time payments, which actually helps rebuild your credit.
Can I modify my Chapter 13 plan if my situation changes?
Yes. If your circumstances change after your plan is approved, you can request a modification. The Chapter 13 plan is calculated based on your actual income and reasonable living expenses. If you truly cannot afford your current payment, the court will work to find a manageable solution.
How long does a Chapter 13 case typically take?
Chapter 13 plans run for three to five years. You make monthly payments to the trustee during this entire period. Once you’ve completed all payments and met other plan requirements, your remaining eligible debts are discharged.
Don’t Wait—Protect Your Home Today
If you’ve received a foreclosure notice or you’re behind on your mortgage, the window to act is narrow. Each day that passes brings you closer to losing your home.
Bankruptcy may be exactly the tool you need to stop the foreclosure, keep your home, and regain control of your financial situation. But bankruptcy only works if you file before the foreclosure sale occurs.
At Roach Bankruptcy Center, we help Missouri homeowners manage foreclosure and bankruptcy every day. We understand the urgency of your situation and know how to move quickly to protect your home. We’ll evaluate your specific circumstances, explain your realistic options, and guide you through the process from start to finish.
Your home is too important to leave to chance. Reach out today for a free initial consultation to discuss whether bankruptcy makes sense for your situation. The sooner you take action, the more options you’ll have available.
