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.
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.
Next is you fill out a “mailing matrix” which would contain a list of creditors that are holding you collateral loans, like real property, your home, car, and others of value that you owe money on.
You will then make a statement of your social security number. For those who are filing to save their homes, they will file the Credit Counseling Certificates which will hold all collection actions, since this and the petition will make an “automatic stay” active.
There are then other forms that you have to fill up after you have accomplished the above forms, like schedule A to J forms, of which you have 14 days to accomplish of what are required.
The information then that you have supplied will have you declare that they are all true and correct to the best of your knowledge, and the form is a declaration concerning debtors schedules, of which your declaration will be under the penalty of perjury.
You will have to summarize amounts in every schedule using the Summary of Schedules, and must report these information of certain liabilities and related data using statistical summary.
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.
By undergoing the above processes, you will have the opportunity to stop your home from being foreclosed, and you can repay your debts over a period of time for minimal 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.