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This has happened to me a couple times now. The power went out on my computer and when I restarted WLBC3 all I had was the option to create a new character, when before I had 3 characters above level 40. The saves were still there in my documents folder, but it's like the game wasn't reading them. Is there any way to fix this and get my characters back?
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Well the heroes themselves are saved in HeroData.xcr - which is now corrupted. You might save SOME heroes by doing the following:

1)Get an xcr editor.
2)Load the HeroData.xcr and extract all the .hro files.
3)Delete HeroData.xcr (make backup)
4)Enter game and create a random new hero - this will create a new HeroData.xcr
5)With the xcr editor, load HeroData.xcr and import one of your .hro files.
6)Test in game and see if it works.
7)Repeat steps 5-7 until all .hro work or the game crashed. If the latter happened, the last .hro you loaded is corrupted and lost forever.

There is another cheesy solution involving cheats. Simply create the old heroes from scratch and level them up as they used to be using hacks.

Hope this helps,