Chapter 13 bankruptcy will stop foreclosure. When you file for Chapter 13 bankruptcy, you will not lose any property to the bankruptcy trustee as long as you can make the payments. If you cannot make your payments or arrange for loss mitigation you can still your home to foreclosure if you do not pay what is required by your plan.
If you have been turned down in the past for loan modification a chapter 13 can give you another shot at modification. In New Jersey a chapter 13 bankruptcy allows you to pay 60% of your principal and interest and 100% of your escrow to your lender while in loss mitigation. Your arrears normally are paid by dividing your arrears by 60 so that if you completed your chapter 13 plan over a 5 year period the arrears would be paid by the end. A chapter 13 trustee is paid 10% of your payments to pay for their services. If you have questions talk to an NJ Foreclosure Defense attorney who understands bankruptcy.