Can filing for chapter 11 bankruptcy allow us to stop foreclosure process on our rental properties

If you have a pending bankruptcy, that causes an "automatic stay" of all other proceedings against you that might be brought or have been brought by any creditors you list in your bankruptcy schedules. The purpose of this is to centralize all issues before the bankruptcy court. Depending on the details, you may be able to include the mortgages on the rental properties in your Chapter 11 Plan. If the bankruptcy court approves and confirms a plan that includes them, the lenders will not be able to foreclose as long as you are paying what you agreed to pay under the plan.

I am not familiar with Virginia Foreclosure law, but one thing that should be consistent is that in order to protect your home you need to file the bankruptcy before the foreclosure sale date. Being summoned to court is not the end all be all. Assuming that Virginia only has judicial foreclosures (or that that is typically the route that creditors choose to take in Virginia), you will still have time to save your house once summoned to court. It only becomes too late when the foreclosure sale occurs (though you may have the opportunity to redeem at that time, bankruptcy would not make redemption any easier).

I don't know enough about your financial situation to know if Chapter 11 is the best option for you. Typically, I would recommend a chapter 13 to save one's house, but if your debt load is too high, you will not qualify for a chapter 13 (which is more affordable than a chapter 11) and a chapter 11 would then be your best option. You need to consult with an attorney that can give you a better idea of which chapter is best for you (it highly depends on your debt load).

If you are considering a Chapter 11, you will need the help of an experienced bankruptcy attorney as soon as possible. With three rental homes, it would be unlikely that a Chapter 13 would be sufficient. Chapter 11 is more complicated and more expensive that a Chapter 13, but is similar in some ways. For instance, individuals in Chapter 11 now have to devote five years' income to a Plan unless creditors are paid in full earlier than that. If a foreclosure action has been commenced, you are definitely in a race with time. Please contact a lawyer soon. Good luck to you.

I agree with Ms. Hoenig's answer (#2) in regard to the issue of your current foreclosure status which in no way signifies that a bankruptcy petition has been necessarily filed and your home therefore protected for the interim by an automatic stay from the bankruptcy court.