Apr 21, 2015

Posted by in Law And Politics | Comments Off on Paperwork Need to Help Stop a Foreclosure During Bankruptcy

Paperwork Need to Help Stop a Foreclosure During Bankruptcy

Getting behind on mortgage payments is not something anyone wants to face. But there are times when hard choices need to be made about the priorities of what gets paid. Unfortunately, ignoring these payments for too long will lead to foreclosure. The threat of losing a home compounded with an overwhelming set of bills can lead to the need to declare bankruptcy. Ideally, you want to take steps before the foreclosure proceedings make it impossible to keep your home. There is some of the paperwork that you need to have available to your bankruptcy lawyer.

One of the pieces of information needed to help stop a pending foreclosure in Chandler, AZ is an evaluation on the price of your home. There was a time period when mortgages were made on the inflated price of the home. When real estate prices fell dramatically, homeowners were left carrying more mortgages than the homes were worth. While there are some programs to help remedy this problem, many are not effective if the home is already in foreclosure proceedings.

Another piece of information needed is the amount of income of the household. This information is usually obtained from pay stubs and from past W-2 forms. This is needed as part of the bankruptcy proceedings. This information is used to help calculate your income to debt ratio and to determine if the mortgage should be included in the list of things that can be saved rather than lost.

The amount of other debts in addition to the amount owed when the foreclosure in Chandler, AZ process began is another part of the paperwork that is needed for a bankruptcy. Some debt such as credit cards can be dissolved during the bankruptcy process. However, some debts such as student loans are still active during this process. The list of creditors is also needed since this information is used in negotiating with the different creditors.

While your only option for an overwhelming situation may be bankruptcy, sometimes your home can be spared. Click here to find out more information about how the bankruptcy process works and what steps you can take when you are facing a foreclosure.

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