The common misconception for many homeowners facing foreclosure is that bankruptcy can always resolve their situation. In actual fact, the bankruptcy avoid foreclosure method is not as simple of a solution as it may seem. Truly, bankruptcy can actually yield substantial benefits in some cases of foreclosure, but not all foreclosures are best served by a bankruptcy. When a bankruptcy is filed, whether it is a Chapter 7 or Chapter 13, the court will issue an order known as an Order of Relief, which requires that all actions of collection, including foreclosure, are halted for the time being, regardless of any other factors. In a Chapter 7, this successfully postpones the foreclosure, but does not actually stop it by itself. In a Chapter 13, on the other hand, a successful filing will end in a repayment plan, which allows the homeowner to keep the house and pay back the lender over time. In either case, the bankruptcy will also have a negative impact on credit.