Many homes were lost in 2009 housing bubble to foreclosure that hurt several American families. 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.” What contains in the petition are basic information like name, address, phone, and financial information.
The second step is the filling out of “mailing matrix” where it will show the list of creditors who are holding on you collateral loans, using your real property, your home, your car, and others that are of value that you owe money on.
The next step is you declare 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.
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.
Be aware too of these forms or processes or documentations that will show for example how much you want to pay your filing fee through installment basis, a statement of financial affairs, and a Chapter 13 where basing on your current income per month, your commitment period and your disposable income will be calculated.
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.
Subjecting yourself to the above processes will help you and give you the chance to avoid foreclosure of your home, and you can make a repayment of your debts for over comfortable time since you will only be paying small amounts of money.
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.