How to Stop Foreclosure With a Bankruptcy in Oakland

stop foreclosure with a bankruptcyBankruptcy helps individuals and businesses repay overwhelming debt by arranging for a payment plan that helps them make payments to their creditors in an orderly and affordable manner. Filing for bankruptcy in the case of a foreclosure will stop the foreclosure process until the bankruptcy is rescinded, at which point the foreclosure process can continue. Bankruptcy is regulated by federal law; therefore, any filing for bankruptcy must be done in federal court.

1 Get credit counseling at least 180 days before filing. The new bankruptcy law requires that individuals receive credit counseling before filing for bankruptcy. Obtain proof of such counseling. What this means in practical terms is that once you start getting behind on your mortgage payment, and you think bankruptcy is an option you want to explore, you must get credit counseling right away so that you don’t find yourself with a foreclosure sale date looming and you can’t file for bankruptcy.

2 Compile your financial records. When filing for bankruptcy you must prove that you are overwhelmed by your debt and can no longer pay. Get your bills together and all your creditor information to prove this. Have your financial statements with details of income and expenses to show you are unable to make your mortgage payments.

3 Study the federal government bankruptcy website (see Resources below) extensively and obtain specific information for the bankruptcy court in the Northern District of California under which Oakland falls.

4 Print and fill out the necessary forms, which are available on the bankruptcy website. The forms are also available to fill out on the site.

5 Gather all the documentation required, as well as your filing fees, and file the paperwork in the bankruptcy court. You should file it at the federal bankruptcy court in Oakland, located at 1300 Clay Street, Suite 300.

While it is possible to do this on your own, it is still a good idea to get the advice of and services of a bankruptcy attorney. It usually costs a few thousand dollars.

About the author:
By Faith O, eHow Contributor
Read more: How to Stop Foreclosure With a Bankruptcy in Oakland | eHow.com

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Filed under: Bankruptcy • Stop Foreclosure • Stop Foreclosure Bankruptcy

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