If I file bankruptcy, will that interrupt a foreclosure on my family home?

When a bankruptcy is filed something known as the "automatic stay" goes into effect.  This stops all creditor collection action against you, including foreclosure.  However this is only a temporary solution.  The lender can then obtain permission to go forward with the foreclosure proceedings by requesting and receiving a "relief from the automatic stay" from the court. That relief is likely to be granted unless you can immediately bring your account up to date, demonstrate a likelihood that you'll continue to make payments when due, and show that your equity in the home provides a sufficient "cushion" for the lender.

In some bankruptcy districts, you must also negotiate a formal "reaffirmation agreement" with the lender.  This means that you will continue to be personally liable for payments even after your bankruptcy discharge. 

A Chapter 7 never permanently stops a foreclosure, unless the creditor agrees and homestead exemption laws stop the trustee from selling the property.

Most people who file for bankruptcy have big arrearages on their mortgage that they can't pay off right away.  The solution to that problem that allows them to keep their home is to file for bankruptcy under Chapter 13. A filing under this plan provides for continuing monthly payments on the mortgage and paying off the arrearages over the life of the plan (three to five years).

Note:  Under a Chapter 13 you would probably be able to keep your investment property as well.