THE DIFFERENT CHAPTERS OF BANKRUPTCY
(U.S. BANKRUPTCY CODE, TITLE 11, U.S.C.)

A. CHAPTER 7: LIQUIDATION

1. Available to individuals (unless previous discharge within 8 years and corporations
2. Trustee appointed in all cases to verify accuracy of disclosures, conduct creditors meeting, bring actions as necessary to set aside fraudulent transfers/fraudulent conversions/ preferential payments, and/or liquidate non-exempt assets and distribute funds pro-rata to creditors.
3. Trustees appointed by U.S. Trustee
   

OUTLINE OF FORECLOSURE AND OPTIONS

1. PRE-FORECLOSURE OPTIONS
   1. CONTACT LENDERS LOSS MITIGATION DEPARTMENT
      1. Be diligent & patient
      2. Get names & extension numbers of loan representatives
         and date of call
      3. Continue to work on modification even if foreclosure proceedings filed
   2. FOREBEARANCE/REINSTATEMENT
      1. Temporary reduction or suspension of payments
      2. Payments plus extra resume to catch up missed payment