Can Chapter 13 Stop Foreclosure? Lender ordered to pay $45 million in punitive damages after ignoring automatic stay Los Angeles, CA: Can chapter 13 stop foreclosure? A California bankruptcy judge handed down a decision in April that awarded $45 million in damages to a husband and wife after their lender ignored bankruptcy proceedings and foreclosure on the couple. The Sacramento Bee reported that the trouble began for the borrowers when they attempted to obtain a loan modification on … [Read more...] about Can Chapter 13 Stop Foreclosure? Attention All Homeowners!