While Foreclosures Continue to Increase in Ohio, Chapter 13 May Offer Protection

September 28, 2012 (Press-News.org) While Foreclosures Continue to Increase in Ohio, Chapter 13 May Offer Protection

In Ohio, the foreclosure crisis created a backlog of foreclosures that mortgage holders are now only starting to address. As a result, foreclosures in Ohio increased over the first six months of 2012 while the national rate of foreclosures fell. Distressed homeowners in Ohio facing foreclosure may find the right protection in filing for Chapter 13 bankruptcy.

Foreclosures across the country fell by nearly 11 percent in the first half of 2012 when compared to the same time period last year. In contrast, the foreclosure rate in Ohio has increased by more than 8 percent. From January to June of last year, there were 44,419 homes in foreclosure in Ohio, and during the first half of this year there were 48,254 properties with default, auction or repossession notices. That means one in every 106 housing units in the state is subject to a foreclosure filing, which is one of the highest rates of foreclosure in the country.

The foreclosure rate is even greater in Central Ohio, where the rate is up nearly 14 percent in comparison to last year. In the southwest corner of the state, homeowners in Hamilton County and elsewhere in the Cincinnati area also face foreclosure issues, and bankruptcy protection may be the appropriate choice for many who want to save their homes.

Preventing Foreclosure With Chapter 13 Bankruptcy

Chapter 13 bankruptcy protection offers distressed homeowners a unique set of tools to address the threat of foreclosure. The first of these tools is the automatic stay. An automatic stay is a court order that goes into effect immediately when bankruptcy is filed and stops creditors from taking collection actions such as foreclosures and evictions. At the very least, the automatic stay provides a homeowner with breathing room to decide the next step. Another important tool specific to Chapter 13 is the repayment plan.

Chapter 13 bankruptcy is often referred to as "reorganization" because it allows filers to create a plan to pay off some or all of their debts over a period of three to five years. Home mortgage debt may be included in the plan, allowing a homeowner to avoid foreclosure and keep the home by keeping up with the payments and catching up on any past-due balance that has accrued. The rescheduling of other debts under the plan may also help homeowners focus on redirecting finances to the home.

If you face foreclosure in Ohio, contact an experienced foreclosure and bankruptcy attorney to review your legal options.

Article provided by Patrick J. Conway, LLC
Visit us at http://www.patrickconwaylaw.com/