Bankruptcy is one of the commonly used alternatives against foreclosure. In bankruptcy, the homeowner can avoid foreclosure though the impact will still be relatively negative. By filing a Chapter 7 bankruptcy, the foreclosure will, at the least, be halted until filing has completed. The lender will legally have to postpone the foreclosure by order from the government. In filing a Chapter 13 bankruptcy, the same applies for the filing process. In fact, if the bankruptcy is granted, the homeowner can expect to actually stop the foreclosure, at least for the time being. A Chapter 13 bankruptcy sets up a 3 -5 year repayment plan which, if followed, will allow the homeowner to continue payment for the home as usual. However, foreclosure remains an option if the homeowner defaults on the bankruptcy repayment plan. In either form of bankruptcy, the homeowner's credit will be greatly affected, and in a negative way. However, it sometimes remains a positive alternative to foreclosure, as it is possible for the person to keep ownership of the house, instead of losing it.