Foreclosure is never a situation you want to find yourself in, but you can try to delay the process or ask for a loan modification so you can keep your home. If all else fails, though, you may have no alternative but to file for bankruptcy. By doing so, you will benefit from an automatic stay, which immediately halts all your debtors’ collection efforts. More importantly, you get to keep your home at least until the bankruptcy case is discharged in court.
However, some people think that bankruptcy allows them to keep their home without paying back the bank or lender. In other words, they see bankruptcy as a “Get out of Jail” card. This isn’t the case; banks would never let you off the hook that easily.
This belief seems to stem from a misunderstanding of the concept of liens. Basically, a lien is proof that you owe a lender money for a certain property. If you fail to cough up the payment, the lender will enforce the lien to repossess that property—much like what happens during foreclosures.
When you file for bankruptcy, you are absolved of the need to pay off your mortgage. If you can’t afford the payments anymore, just give up the house. However, bankruptcy does not rescind the lien, so if you want to stay in your home, you have to keep paying back the bank or it will foreclose the property.
Weidner Law 
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