Many homes were lost in 2009 housing bubble to foreclosure that hurt several American families. There could have been a definite way to stop these foreclosures if people had known the use of Federal Bankruptcy Laws. By applying the Laws of Federal Bankruptcy, individuals will have the protection against those unscrupulous and greedy creditors. Be aware though that the execution of the laws is extremely complex even if the idea seems to be fairly straight forward.
First is that the process itself would take a four page “voluntary petition” that one should file at the District Courthouse. Basic information like name, address, phone and financial information, are among what you will input in the petition.
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.
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.
Afterwards, you will fill up a Declaration Concerning Debtors Schedules, of which the information you declare will be under penalty of perjury swearing that these are all true and correct to the best of your knowledge.
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.
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.
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.