At our North Eastern Ohio bankruptcy law office in Canton, we frequently see people who are trying to save their home from foreclosure. They may have fallen behind on their mortgage payments due to credit card debts, medical bills, a lawsuit, job layoffs, death or disability, or numerous other reasons. We strive to seek the best possible solution for our clients to prevent their home from being foreclosed on.
Some methods of preventing home foreclosure in Stark, Tuscarawas, Wayne, Carroll, Columbiana, Summit, and Holmes County include utilizing the automatic stay of bankruptcy, procedural foreclosure defense, substantive foreclosure defense, and debt re-organization.
Filing Chapter 7 Bankruptcy to Prevent Foreclosure
While chapter 7 bankruptcy does require that your mortgage be current in order to keep your home, the act of filing begins the automatic stay, which prevents creditors from collection attempts and stops foreclosure until the bankruptcy is discharged. Once you have decided to file for chapter 7 bankruptcy, this can relieve the burden of paying your other unsecured debts, thereby allowing you to apply that money toward catching up the mortgage.
Filing Chapter 13 Bankruptcy to Save Home From Foreclosure
If you will not be able to bring the mortgage current for a chapter 7 filing and still want to keep the house, then a chapter 13 bankruptcy may be your best option. Filing a chapter 13 bankruptcy sets up a debt repayment plan that has a payment you can afford and lasts for 3-5 years, then discharges remaining unsecured debts. Because your home mortgage can be built into this plan, you will be able to keep your house. Upon discharge of the plan, you will begin to pay your mortgage directly to the bank or mortgage servicer again, and it will be current.
Ohio Foreclosure Defense
If proper procedures were not followed in the handling of your mortgage, we may look to a procedural mortgage defense in order to stop the bank from taking your home. There are also many substantive mortgage defenses for which we may argue in order to save your home.