When a property is in foreclosure, the creditor must vacate the premises and the bank or lender assumes ownership. They may sell it in order to recover the loaned amount. By declaring bankruptcy, you can delay the foreclosure process. Chapter 7 and chapter 13 bankruptcy are the two categories that exist. However, the majority of individuals choose chapter 7 bankruptcy.
To petition for Chapter 7 bankruptcy, you must consider the following:
You must create an inventory of your assets and liabilities. You must also maintain a list of your creditors and their claims.
* You must keep track of your liabilities and income. This list will include your monthly expenses as well as the source and periodicity of your income.
* A listing of active contracts and leases that have not yet expired. For instance, it could be your apartment lease.
Having your financial statements readily available is also crucial. This statement will include your annual income for the past three years, as well as any foreclosures, repossessions, and outstanding obligations.
* The court will request your most recent tax returns.
Remember, if you owe consumer debt or business debt, you are required to submit a certificate of credit counseling and a repayment plan. The credit counseling organization will detail this plan. A trustee (sometimes appointed by the law firm representing your case) will examine all of your assets following the filing of the petition. If any asset is determined to be non-exempt, it will be sold to recover a portion of the loan funds and the proceeds will be paid to the lender or creditor. The court will evaluate your case and render a decision following a one-month delay.""
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