Can I file for bankruptcy to avoid foreclosure after the moratorium ends in Ohio?

If you're facing foreclosure in Ohio, you may be wondering if bankruptcy can help you avoid losing your home. The good news is that bankruptcy can provide a way to stop foreclosure and give you time to catch up on your mortgage payments. However, it's important to understand that bankruptcy is not a one-size-fits-all solution, and it's important to consider all of your options before making a decision.

First, let's discuss the foreclosure moratorium that is currently in place in Ohio. This moratorium was put in place to provide relief to homeowners who have been financially impacted by the COVID-19 pandemic. The moratorium has temporarily suspended the initiation of new foreclosures, as well as the completion of pending foreclosures. However, the moratorium is set to expire on March 31, 2021, which means that homeowners who are behind on their mortgage payments may soon be at risk of losing their homes.

If you're worried about losing your home after the moratorium ends, bankruptcy may be an option to consider. There are two main types of bankruptcy that can help you avoid foreclosure: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is also known as a "liquidation" bankruptcy. It involves selling off some of your assets to pay off your debts. While Chapter 7 bankruptcy can help you discharge some of your debts, it does not provide a way to catch up on your mortgage payments. Therefore, Chapter 7 bankruptcy is generally not the best option for homeowners who are facing foreclosure.

Chapter 13 bankruptcy, on the other hand, is a "reorganization" bankruptcy that allows you to catch up on your mortgage payments over time. Under Chapter 13 bankruptcy, you will be required to pay off a portion of your debts through a repayment plan that lasts three to five years. During this time, your lender cannot initiate or complete a foreclosure on your home. After you successfully complete the repayment plan, any remaining unsecured debts (such as credit card debts) will be discharged.

If you're considering bankruptcy as a way to avoid foreclosure, it's important to speak with a bankruptcy attorney to determine the best course of action. An experienced bankruptcy attorney will be able to review your financial situation and provide guidance on whether bankruptcy is the right option for you.

If you're facing foreclosure and want to explore your options, call the law firm of Doucet Co., LPA at (888) 200-9824. Our experienced bankruptcy attorneys can help you understand your options and determine if bankruptcy is the right choice for you.