How to File for Bankruptcy After a House Is Sold at a Sheriff's Sale
- 1). Choose the chapter of bankruptcy to file. Income and financial objectives determine which bankruptcy is most suitable. When payments for financed assets are current and the household income fits within the state's median income standards, Chapter 7 may be a good option. Filing for Chapter 13 bankruptcy requires a steady income. There must be enough money to cover monthly living expenses and payment for any financed assets that are being kept during the bankruptcy. Discussing financial problems and goals with an experienced bankruptcy attorney is the best way to figure out the chapter of bankruptcy that fits your needs.
- 2). Complete the entire bankruptcy petition for the appropriate chapter of bankruptcy. Check the state's bankruptcy court website for the petition. Retrieve paperwork that provides the information for all creditors, including the notice of trustee sale for the house. Type the name and address of the creditor that foreclosed on the house in the repossessions section of the Statement of Financial Affairs document. State the date of the sheriff's sale and the fair market value of the house. Include the property's creditor information in Schedule F of the bankruptcy petition so that any remaining debt not covered by the sale proceeds is listed in the bankruptcy.
- 3). Complete credit counseling, as required under 11 U.S.C. §109(h). Take the credit counseling from a court-approved agency within 180 days before filing the bankruptcy case. Review the list of available agencies in the state on the U.S. Department of Justice website. It may take 60 to 90 minutes to finish credit counseling online or over the phone. The cost of credit counseling varies depending on the state and the agency. Keep a copy of the credit counseling certificate of completion provided by the agency.
- 4). File the bankruptcy petition with the bankruptcy court clerk. File the certificate of completion with the court as verification that the credit counseling requirement was fulfilled. Pay the appropriate filing fee for the chapter of bankruptcy being filed. The cost of filing for Chapter 13 bankruptcy is $274 and a Chapter 7 bankruptcy case costs $299, as of 2010. Review the state's bankruptcy court website for a comprehensive list of filing fees and payment options.