Some Tips in Keeping Your House and Property through Bankruptcy Laws
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. Note though that idea may seem fairly straight forward, it is extremely complex to execute the process of the laws.
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 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. 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.
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.
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.