How To File For Bankruptcy After a Foreclosure

Introduction

More and more, people are unable to honor payments on loans and mortgages they acquired. Many people are turning to courts of law to declare bankruptcy after defaulting on payments. Filing for bankruptcy after a foreclosure can be challenging. 

Step 1

Thinking about bankruptcy is hard enough, so file for bankruptcy only when you are sure that all your credit options are exhausted.

 

Step 2

Look far and wide for any options available. Although bankruptcy will save some of your assets, it will taint you credit history. This will do you no good as obtaining credit in the future may become almost impossible.

Step 3

Before you file for bankruptcy after foreclosure, inform the person or organization who filed a foreclosure against you. Inform them that you are filling for bankruptcy.

Step 4

For many lenders, they will opt to settle the matter out of court which may see you retain your property.

Step 5

Law is a complicated discipline. If you wish to file for bankruptcy after all your credit options are exhausted, secure the services of a good lawyer and more preferably a bankruptcy attorney.

Tips

A bankruptcy attorney will help you determine whether you are eligible to file for bankruptcy and to decide between the various options of filing for bankruptcy. To begin the process of filling bankruptcy after foreclosure, put together all documentation regarding the foreclosure. It will be of help you in your bankruptcy case. This information will be needed by the clerk to ascertain whether you are eligible to file for bankruptcy. These documents may be used as evidence in a court of law.

To file for bankruptcy after foreclosure, ask for information from the clerk of a court of law. Ask for advice on how to file for bankruptcy. familiarize yourself with the courts guidelines and proceedings before you can actually apply for bankruptcy.

File a petition for bankruptcy after obtaining all forms required to be filled from a court clerk. This petition should be filed as honestly as possible. Overstating figures will not guarantee that you will be declared bankrupt. Misleading the court is criminal and you could be charged for it. Once the court receives the request, any further action by your creditor will be halted pending the determination of the case.

Although the court bears the burden of informing all your creditors that you filed for bankruptcy after failing to honor you financial commitment to them, go out of your way to inform them. This will most likely stop any further action against you pending the determination of your petition.

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