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. Note though that idea may seem fairly straight forward, it is extremely complex to execute the process of the laws.
First is that the process itself would take a four page “voluntary petition” that one should file at the District Courthouse. In the petition, you will be asked to put your basic information such as your 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. 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.
After the above forms are filed, you then have 14 days to file other forms that are required, from schedule A to J forms.
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.
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.
Other forms to be completed are like an application to pay in installment basis your filing fee, making of a statement of financial affairs, and a Chapter 13 where your disposable income and commitment period will be calculated in reference to your current monthly income.
Other processes would be Debtors Certification of Completion of Post-Petition, Amendment Cover Sheet, and the Repayment Plan of Chapter 13, considered as perhaps the most important aspect of 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.
In order that you will get help about your particular case, it is advisable that you consult a bankruptcy lawyer to give you the right information and what to do.