Avoid Foreclosure by Filing Chapter 13 Bankruptcy

If you want to avoid foreclosure, you can opt to file a Chapter 13 Bankruptcy. This lets you reorganize how you pay for your debts. This way, you can prioritize your home mortgage and keep your house.
Chapter 13 bankruptcy would help you avoid foreclosure, and pay all your other debts as well. This works by getting lower interest rates, and get 3 or 5 years to repay them. Some people like to apply for this bankruptcy rather than filing for Chapter 7 Bankruptcy, since with Chapter 13 bankruptcy, a person can keep his assets, such as his home. This would also help them avoid foreclosure and secure all their properties, instead of just hoping for it to happen. Here is a step by step guide about how you can file your Chapter 13 Bankruptcy:

1.Attend a credit counseling class. This class should be approved and under the United States Trustee’s Office. This is the first, and probably most important step you need to do to avoid foreclosure.
2.File the necessary documents. Make sure that you file with court the following documents. You have to make sure that you get everything dones, so that you can secure your house and avoid foreclosure:

• federal tax return from last year
• certificate for attending the credit counseling class
• income and expenses
• assets and liabilities
• statement of financial affairs
• unexpired leases contracts
• debt repayment plan
• monthly net income
• evidence of payment from employer

3.Give the following information to the case trustee of Chapter 13:

• tax return of the most recent tax year
• tax returns filed
• tax returns of previous years that had not yet been filed
• list of creditors and details of their claims
• income details
• properties
• monthly living expenses

4.Wait for you to be appointed to a trustee which would administer your case.
5.After 40 to 50 days, your trustee will meet with creditors. This is also where you would meet all your creditors. They can ask you questions, so you have to be prepared for it.
6.After the meeting, within 90 days, unsecured creditors would then file claims with the court.
7.The trustee and the creditors would go to court for the hearing of your repayment plan.

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