When a person files bankruptcy, an automatic 'stay' goes in place. This stops a foreclosure until the lender goes into court and files a request to have an order lifting the auto 'stay' granted. If this order is granted to allow the foreclosure to go forward, then it will proceed. However, certain things need to happen in the case before the court will consider the motion to lift the 'stay'. What this does is buy time to sort things out and possibly have options as Dogfish laid out. So I've heard.