Can I delay the foreclosure process in Ohio by filing for bankruptcy?

If you're facing foreclosure in Ohio and are considering bankruptcy as a way to delay the process, you're not alone. Many homeowners turn to bankruptcy as a way to buy themselves some time and potentially save their home from being foreclosed on. However, it's important to understand that bankruptcy is a complex legal process that can have significant consequences, and it may not always be the best solution for everyone.

First, let's talk about how bankruptcy can delay the foreclosure process. When you file for bankruptcy, an automatic stay goes into effect, which temporarily stops most collection actions, including foreclosure. This stay gives you time to catch up on missed mortgage payments, negotiate a loan modification or forbearance agreement with your lender, or pursue other options to save your home.

However, it's worth noting that the automatic stay is not always a permanent solution. In some cases, your lender may be able to obtain permission from the bankruptcy court to proceed with the foreclosure. Additionally, if you don't address the underlying issues that led to the foreclosure in the first place (e.g., by catching up on missed payments or negotiating a new repayment plan), the lender may be able to resume the foreclosure process once the bankruptcy is over.

There are several other things to consider when deciding whether bankruptcy is the right option for you:

The type of bankruptcy you file for: There are two main types of bankruptcy available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves liquidating your assets to pay off your debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over a period of three to five years. Each type of bankruptcy has its own eligibility requirements and can affect your credit in different ways, so it's important to understand the differences before deciding which one to pursue.

The impact on your credit: Both Chapter 7 and Chapter 13 bankruptcy can have a significant impact on your credit score and your ability to borrow in the future. While bankruptcy can provide a fresh start, it can also make it more difficult to get approved for loans, credit cards, and even rental housing.

The potential costs: Filing for bankruptcy can be expensive, as you'll need to pay court fees, attorney fees, and other costs associated with the process. Depending on your financial situation, you may not be able to afford these costs.

If you're struggling to make mortgage payments and are considering bankruptcy as a way to delay the foreclosure process in Ohio, it's important to carefully weigh the pros and cons and seek legal advice from an experienced attorney. At Doucet Co., LPA, our attorneys can help you understand your options and determine whether bankruptcy is the right choice for you. To schedule a consultation, call us at (888) 200-9824.