Many American families lost their homes in the middle of 2009 housing bubble to foreclosure. It was sadly due to the fact that many of these people did not know about Federal Bankruptcy Laws that would have definitely stopped the foreclosures of their properties. By using the Federal Bankruptcy Laws, people are protected against creditors who are greedy and unscrupulous. Be aware though that the execution of the laws is extremely complex even if the idea seems to be fairly straight forward.
First is that the process itself would take a four page “voluntary petition” that one should file at the District Courthouse. Basic information like name, address, phone and financial information, are among what you will input in the petition.
The number two step you will do is to fill out a “mailing matrix” where you will write down a list of creditors how are holding anything of value you own money on, like real property, your house, your car and others, which they used as a hold for your collateral loan.
The next step is you declare your social security number. In order to make all collections actions stay, those who are filing to save their homes will fill up the Credit Counseling Certificates, and through this, the “automatic stay” will activate.
Once the above forms are filed, the person has 14 days to file the other forms required, like Schedule A to J forms.
Next is you will have to declare that the information you have provided are true and correct to the best of your knowledge under penalty of perjury, and this is the form of Declaration Concerning Debtors Schedules.
Then you have to summarize the amounts of each schedule under the Summary of Schedules, and report your information under Statistical Summary of Certain Liabilities and related data.
There are also other documentations and processes that you have to know about, like an application if you want to pay filing fee in installment basis, make a statement of financial affairs, and a Chapter 13 where you will state your present monthly income and a calculation of commitment period and your disposable income.
There is also the process of Debtors Certification of Completion of Post-Petition, and Amendment Cover Sheet, the Repayment Plan of Chapter 13, which is the most important part of the Bankruptcy Laws.
The above processes, will give you the ability to stop your home from being foreclosed, will make your repay your debts over a period of time for small amounts.
It is important then that you consult a bankruptcy lawyer to assist you about your specific case so you will have the right information and action.