Legal Question in Real Estate Law in California

1. Absolutely yes.

2. Yes, but there may be penalties you won't like, such as being unable to re-file for 180 days during which time your home is unprotected.

1. A bankruptcy filing will result in an "automatic stay" of actions against the bankrupt, including lawsuits and foreclosures.

2. Well, it isn't called "cancelling," but you can have your case dismissed by failing to follow the rules such as filing required schedules. This is disapproved practice and results in you being branded a "serial filer" if you need to file again soon, with loss of certain rights.

Filing and then being kicked out of court by defaulting can be expensive and results in a permanent record that will affect you in other ways, such as credit rating, but then so does foreclosure. I would not do it unless you have some very strong need for extra time. Often the usual notice-and-unlawful detainer time requirement gives the foreclosed borrower sufficient time to make plans.

I don't do bankruptcy law, so consider my comments about bankruptcy as mere secondhand knowledge.

I suggest you speak to a competent bankruptcy attorney about filing Chapter 13.

Filing bankruptcy creates an automatic stay, that stops all collection remedies, including a trustee's sale. The lender however, usually files a motion for relief from the stay, to obtain permission from the bankruptcy court to continue with the foreclosure. Those motions are very technical, and have very technical defenses.