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. People would have been protected against those creditors who are greedy and unscrupulous if they have applied the Federal Bankruptcy Laws. Be aware though that the execution of the laws is extremely complex even if the idea seems to be fairly straight forward.
The first step that would kick off the process is for one to file at the District Courthouse a four page “voluntary petition.” 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.
You will then make a statement of your social security number. If you are filing in order to save your home, you will now file the Credit Counseling Certificates together with the petition, and this will make the “automatic stay” active which will hold all collection actions.
After the above forms are filed, you then have 14 days to file other forms that are required, from 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.
There is also a summary of schedules where each schedule has amounts summarized under Summary of Schedules, and must report these information in 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.
You then have to go through the process of Debtors Certification of Completion of Post-Petition, fill up the Amendment Cover Sheet, and make your Chapter 13 Repayment Plan, a very important part of the Laws of Bankruptcy.
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.
If you want more information and specific solutions in your particular case, it is better to seek the help of a bankruptcy lawyer to assist you.