Summarize the following:
Bankruptcy is the process of eliminating some or all of your debts in exchange for either regular payments or a seizing of your property. Although it may not seem like an enviable option, it's the smartest way out of an underwater mortgage for many homeowners. When you file for bankruptcy, the foreclosure proceedings can be stopped with an automatic stay. In order to qualify for bankruptcy, you have to complete a means test, pre-bankruptcy credit counseling, as well as acquire the correct paperwork such as tax documents. There are essentially 2 different kinds of bankruptcy declarations, each with their own unique rules and specifications. As they relate to stopping a foreclosure, they are briefly described below:  In chapter 7 bankruptcy, you ask to have most, if not all, of your debts discharged by the courts. In exchange for this discharge, the courts can take any property not exempt from collection, sell it, and distribute the proceeds to your creditors. With chapter 7, you won't be able to keep your house, but you will be able to stall the foreclosure for at least a couple of months. For chapter 7 bankruptcy, you will be able to keep your home if it is the only property you own and if you currently reside there. Though the debt will be discharged, you must continue to make payments on the home in order to keep it. If you do not make the payments, the lender can foreclose on the property. In some states, you will be able to discharge the debt and move out without any recourse, but in other states the lender may be able to come after you for the debt. In chapter 13 bankruptcy, you agree to a plan to pay back all or most of your debts over a certain period of time. The time you have to repay the debt, as well as the repayment plan itself, depends on how much you earn, as well as the types of debt you currently own. With chapter 13, you should be able to keep your home, especially if you think you'll be able to make payments in the future. The repayment plan usually lasts three to five years. S. Bankruptcy Court. Meet with a lawyer and declare your bankruptcy. Start making payments. After a while, attend a meeting of the creditors. This is a meeting between you and a bankruptcy trustee. However, your creditors may also attend. This meeting will give you a better sense of where foreclosure proceedings are at. Bankruptcy attorneys usually collect their fees before a bankruptcy begins because they don't want you to go bankrupt as a result of their fees. The fees could cost $1500 to $3000 or more depending on how complicated your situation is. Find an attorney who charges a flat fee and who has experience with bankruptcies.
Understand personal bankruptcy. Decide between filing chapter 7 and chapter 13 bankruptcy. File your bankruptcy petition with your local U.