In Ohio, a Sheriff’s Sale occurs when the owner of a property cannot make mortgage payments, leading to the legal sale of the property by the lender. While there are many types of properties that can be subjected to a Sheriff’s Sale, such as single-family homes, commercial properties, and complexes, any property that has a mortgage can face Sheriff’s Sale if the owner becomes delinquent on payments. When your home faces foreclosure and Sheriff’s Sale, you may wonder if bankruptcy can help. The Jones Law Firm has the answers.
Just like any foreclosure or repossession as a result of falling behind on payments–time is of the essence. However, Chapter 13 bankruptcy can help stop a Sheriff’s Sale if acted upon quickly.
Under the automatic stay of the Bankruptcy Code, legal action cannot begin once the stay has begun. If a Sheriff’s Sale has already begun taking place, it is too late to invoke the automatic stay. But there are options.
If the Notice of Bankruptcy is forwarded to the sheriff’s office prior to the sale, the Sheriff’s Sale must be stopped. Given the intricate nature of the Chapter 13 filings, it is important to move quickly and not wait until the last moment to file as this can impact your ability to stop the sale.
Remember, the automatic stay is not enough to end a sale or foreclosure. If you cannot submit an approved Chapter 13 repayment plan, your case may be dismissed and the Sheriff’s Sale will commence. This is why it’s important to have all documentation prepared, showing proof of income that will allow you to pay back legal fees, and other penalties as the plan continues.
It is not uncommon for people to lose their job for a short period of time before getting back on their feet. Unfortunately, at that time, falling behind on bills and mortgage payments can happen. But so long as you have a new source of income, Chapter 13 bankruptcy can allow you to catch up.
This is particularly beneficial because the bankruptcy code will cure all arrears, fees, and penalties, making it easier to make those monthly payments. While you won’t be gaining more interest, remember that the penalties and fees owed will still be part of your repayment.
Again, what becomes important here is timing. The sooner you realize you need some help getting your finances under control, the more likely your case is to be approved, avoiding the fear of Sheriff’s Sale.
Most people have small debts they are working to pay off. But when you lose your job and are only now getting back on your feet, you may need options to avoid losing your family home. If you are facing Sheriff’s Sale in Ohio, know that you are not alone and that The Jones Law Firm can help.
If you are questioning if Chapter 13 bankruptcy is right for you and if it can stop the Sheriff’s Sale from happening, you need to contact Ohio bankruptcy attorney Michael Ryan Jones. With offices in Reynoldsburg, Ohio, The Jones Law Firm works with clients in and around Columbus and throughout central Ohio. We will not only help you through the process with skill and dedication, but we are here to help you during this emotionally difficult time. Contact us today.