25 Year Foreclosure From Hell

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Am quoting here a featured story from the Wall Street Journal entitled “The 25-Year Foreclosure From Hell” by Robbie Whelan Monday, December 6, 2010

This story may be incredulous to some people, but some of the antics used here to prevent foreclosure of mortgage actually happens in Philippine jurisdiction. 

"Patsy Campbell could tell you a thing or two about fighting foreclosure. She's been fighting hers for 25 years. The 71-year-old retired insurance saleswoman has been living in her house, a two-story on a half acre in a tidy middle-class neighborhood here in central Florida, since 1978. The last time she made a mortgage payment was October 1985. And yet Ms. Campbell has been able to keep her house, protected by a 105-pound pit bull named Dodger and a locked, rusty gate advising visitors to beware of the dog.

"They're not going to take this house," says Ms. Campbell. "I intend to stay in this house and maintain it as my residence until I die."

Ms. Campbell's foreclosure case has outlasted two marriages, three recessions and four presidents. She has seen seven great-grandchildren born, plum real-estate markets come and go and the ownership of her mortgage change six times. Many Florida real-estate lawyers say it is the longest-lasting foreclosure case they have ever heard of.
The story of how Ms. Campbell has managed to avoid both paying her mortgage and losing her home, which is currently assessed at more than $203,000, is a cautionary tale for lenders that cut corners and followed sloppy practices when originating, processing and servicing mortgages. Lenders are especially vulnerable in the 23 states, including Florida, that require foreclosures to be approved by a judge.

Top secrets on getting the best mortgage for your car loan

Most people acquire their car through mortgage financing. Car is no longer considered a luxury these days but a necessity because the convenience it brings far outweighs the cost shouldered for the value of the car.

Photo credit flickr 31674926@N02/3079479453 

There are two ways of loaning to acquire car title. This can be done either through a chattel mortgage contract or via a car/asset/finance lease agreement. The car or finance lease is usually granted as a benefit by corporate employers to their employees. Basically, a certain percentage of the value of the car is subsidized by the employer and the remaining portion is offered as loan to the employee subject to minimal interest rates.

Under this scheme of finance lease agreement, the employer, which acts as the financier, retains actual ownership of the vehicle but enables the employee to utilize the car or its commercial value and benefits of car ownership.   The financier-employer purchases the vehicle on behalf of the employee, who then leases the vehicle back from the financier-employer and pays a fixed monthly lease rental for the term of the lease.

At the end of the lease, the employee can either pay a residual value on the lease and take ownership of the car, trade it in or re-finance the residual and continue the lease.

On the other hand, under a Chattel Mortgage or car loan title, the bank or financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase.

The financier then takes a "mortgage" over the vehicle as security for the loan subject to interest and via the “Chattel Mortgage Contract”. Once the loan is fully paid, the mortgage is cancelled giving the customer full and clear title to the vehicle. Following are the features of a car loan:

·     Flexible contract terms ranging from 24 to 60 months (two to five years)

·         Fixed mortgage interest rates and monthly mortgage amortization

·         Mortgage Deposit (either cash or trade-in) may be made

·         A tax deduction is available when the vehicle is used for business purposes

To avail of a car loan, the process usually involves negotiation with the dealer of the car of your choice. The car dealer then applies your loan with their in-house financing or your own bank via a Chattel Mortgage Contract. In the contract of car loan, not every amount you shell out is reflected in the Chattel Mortgage Contract because not all the amounts paid go to the bank. What are usually paid to the bank are the principal amount and interest and administrative or processing fees of the bank. Items such as registration fees and taxes are paid to government agencies such as the Land Transportation Office (LTO) and Bureau of Internal Revenue (BIR). There is also the mortgage insurance payable of course to the insurance company. 

This is where every person desiring to have car loan title should watch out for the hidden cost. To have the best mortgage you should be aware of certain fees which you can possibly haggle and be informed of the legal basis of various amounts your mortgage bank or car dealer is charging you with. In order for you to get the best mortgage price for your car loan consider the following:

Firstly, the suggested retail price or selling price offered by your car dealer can be haggled with the agent of the car dealer. The suggested retail/selling price of the car, most often than not, includes the agent’s commission, hence you should be able to maximize the standard discount offered by the agent. Haggle with agent and you can be assured the best price or best mortgage for your vehicle. You can also ask for additional freebies from the car dealer such as car matting, leather car seats, free LTO and car registration, free car loan insurance, free gas, and other warranties and service check up.

Secondly, know the legal basis of the documentary stamp tax being charged. The documentary stamp tax is usually part of the hidden cost and this is where you might be overcharged.

Section 195 of the Tax Code states:

SEC. 195. Stamp Tax on Mortgages, Pledges and Deeds of Trust. - On every mortgage or pledge of lands, estate, or property, real or personal, heritable or movable, whatsoever, where the same shall be made as a security for the payment of any definite and certain sum of money lent at the time or previously due and owing of forborne to be paid, being payable and on any conveyance of land, estate, or property whatsoever, in trust or to be sold, or otherwise converted into money which shall be and intended only as security, either by express stipulation or otherwise, there shall be collected a documentary stamp tax at the following rates:

(a) When the amount secured does not exceed Five thousand pesos (P5,000), Twenty pesos (P20.00).

(b) On each Five thousand pesos (P5,000), or fractional part thereof in excess of Five thousand pesos (P5,000), an additional tax of Ten pesos (P10.00).

On any mortgage, pledge, or deed of trust, where the same shall be made as a security for the payment of a fluctuating account or future advances without fixed limit, the documentary stamp tax on such mortgage, pledge or deed of trust shall be computed on the amount actually loaned or given at the time of the execution of the mortgage, pledge or deed of trust, additional documentary stamp tax shall be paid which shall be computed on the basis of the amount advanced or loaned at the rates specified above: Provided, however, That if the full amount of the loan or credit, granted under the mortgage, pledge or deed of trust shall be computed on the amount actually loaned or given at the time of the execution of the mortgage, pledge or deed of trust. However, if subsequent advances are made on such mortgage, pledge or deed of trust, additional documentary stamp tax shall be paid which shall be computed on the basis of the amount advanced or loaned at the rates specified above: Provided, however, That if the full amount of the loan or credit, granted under the mortgage, pledge or deed of trust is specified in such mortgage, pledge or deed of trust, the documentary stamp tax prescribed in this Section shall be paid and computed on the full amount of the loan or credit granted.

Thus, if the amount of car loan is worth PHP 500,000.00, your documentary stamp tax should be PHP 1,010.00 for the first year. For the second year, the documentary stamp tax should be computed based on the diminished balance of the credit car loan. And so on and so forth until the end of the term of the credit car loan. Add the figures for each year of the credit car loan and the amount charged for documentary stamp tax should not be more than the total added amount. It is thus prudent for one desiring to have loan for car title to get his mortgage calculator and compute the actual documentary stamp tax due.

Thirdly, the car loan insurance may also be part of the hidden cost. Remember that for brand new vehicles, a comprehensive car insurance is a requirement for the car registration. You ought to know that comprehensive motor policies or comprehensive mortgage insurance vary from one insurance company to another, and in order to be assured of the best price you should find the best deal and not simply accept the in-house mortgage insurance being offered by your car dealer or agent. After all, that is your vehicle and nobody can compel you just to accept any mortgage insurance.

The best deal for a mortgage insurance is one that has the least premium price with the maximum coverage. By maximum coverage of a mortgage insurance means insuring every risk the car might be involved in including theft and carnapping and acts of God or the so called force majeure. Therefore find out the insurance company that offers the best mortgage insurance policy by inquiring about the premium and insurance coverage. Make sure you check out provisions of the insurance policy so as to include each and every risk agreed upon during the negotiation stage of the insurance policy contract. This is where you can haggle for the mortgage insurance price and ensure that it is not part of any hidden cost.

Lastly, the price being charged for your car registration with the Land Transportation Office can again be part of the hidden cost. Therefore make sure you know the legal basis for the amounts charged and check if the amount charged actually corresponds to the receipts issued by the concerned Land Transportation Office.

So get the best mortgage for your car by considering the foregoing items.

Sale or Donation. Which is more tax efficient?

Am quoting here a post from another blog. It’s a good read for all property owners. 

“In my professional life, I am always asked the question on which is the tax efficient way of transferring capital property or property not used in business. Is it through donation or sale? Well, the answer depends on two factors, namely: i) value of the property and ii) relationship of the donor to the donee.

If the donation is made to a “stranger”, then sale is more tax efficient than donation. This is because the tax rate for donation to a stranger is 30% while the tax rate for sale is 6%. Further, even if donation is not subject to documentary stamp tax and sale is subject to 1.5% documentary stamp tax, nonetheless, the total tax rate for donation is still higher at 30% compared to the total tax rate for sale of 7.5% ( capital gains tax of 6% and documentary stamp tax of 1.5).

For example, if a father donates a house and lot worth PHP 3 million to his son and the bride-to-be, then 50% of the donation that pertains to the son shall be subjected to the graduated tax rate on donation, while the remaining 50%, pertaining to the donation to the future daughter-in-law shall be subject of 30% tax rate, because the donation made by a father-in-law to his daughter in law is considered or treated by law as donation to a stranger.

The law defines a “stranger” as a person who is not a brother, sister (whether by whole or half blood), spouse, ancestor and lineal descendants; or relative by consanguinity in the collateral line within the fourth degree of relationship (up to first cousin).

If the transfer of property is made from one person to another person who is not a “stranger”, as defined by law, then donation is more tax efficient than sale, at least up to a certain value of the property.”

This is based on the following reasons:

a)   

     Donation is not subject to documentary stamp tax while sale is. Documentary stamp tax for a sale transaction is equivalent to 1.5% of the selling price or fair market value of property whichever is higher.

b)    Tax rate for a sale transaction is 6% while the tax rate for donation is based on graduated rates from 2% to 15% depending on the value of the property.

For example, if a property worth PHP 500,000 is donated, the amount of tax for this donation would be PHP 8,000.00, while the tax rate for sale would have been PHP 37,500, had the transaction been a sale. Donation is thus more tax efficient for this particular case.

Another example; if a property worth PHP 4,500,000.00 is donated, the amount of tax for this donation would be PHP 354,000.00, while the tax rate for sale would have been PHP 337,500.00,, had the transaction been a sale. Thus under this particular case, sale is more tax efficient.

Below is a tax table for donation type of transaction that will help you determine the corresponding tax dues if the transaction is a donation. Compare this with the existing tax rate of 7.5% (6% + 1.5%) for a sale transaction.

Effective January 1, 1998 to present

Net Gift Over	But not Over	The Tax Shall be	Plus	Of the Excess Over
	100,000.00	exempt
100,000.00	200,000.00	0	2%	100,000.00
200,000.00	500,000.00	P 2,000.00	4%	200,000.00
500,000.00	1,000,000.00	14,000.00	6%	500,000.00
1,000,000.00	3,000,000.00	44,000.00	8%	1,000,000.00
3,000,000.00	5,000,000.00	204,000.00	10%	3,000,000.00
5,000,000.00	10,000,000.00	404,000.00	12%	5,000,000.00
10,000,000.00	and over	1,004,000.00	15%	10,000,000.00

Notes:

1.	Rate applicable shall be based on the law prevailing at the time of donation.

What everyone ought to know about the Family Home

Family home

A family home is usually the dwelling place in which a married couple, with their children, ordinarily resides. Basically, the family home would be registered in joint names of both spouses, being a conjugal property, except if the house was inherited through succession or bought before the marriage by either of the spouses.

Not everyone knows that the family home can have beneficial effect on taxation. As a tax saving tip, the family home can be exempted from certain taxes, or used as a deduction to minimize or save on taxes.

Your accountant or lawyer should be advising you of the following key tax information where the family home is subject of taxation:

1)      Exemption from Capital Gains Tax. Generally sale of real property not used for business, such as family home is subject to capital gains tax. However, there the proceeds from such sale is to be utilized in in acquiring or constructing a new principal residence within eighteen (18) calendar months from the date of sale or disposition, such sale is exempt from the capital gains.

This exemption from capital gains tax is subject to the following conditions:

a)      The historical cost or adjusted basis of the real property sold or disposed shall be carried over to the new principal residence built or acquired;

b)      The Commissioner shall be duly notified by the taxpayer within thirty (30) days from the date of sale or disposition through a prescribed return of his intention to avail of the tax exemption;

c)       The said tax exemption can only be availed of once every ten (10) years;

d)      If there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition shall be subject to capital gains tax. For this purpose, the gross selling price or fair market value at the time of sale, whichever is higher, shall be multiplied by a fraction which the unutilized amount bears to the gross selling price in order to determine the taxable portion and the tax due.

2)      Deduction from Gross Estate or Exemption from Estate Tax. Where the family home is part of the gross estate of a deceased, the same may be written off or deducted up to the amount equivalent to the current fair market value of the decedent's family home not exceeding One million pesos (P1,000,000). As a requisite for the deduction, a barangay certificate of the locality where the family home is located must be submitted.

So before entering into any transaction affecting your family home, be reminded of these tax schemes to save on taxes. 

11 Possible Deductions from your Estate Tax

In computing estate tax, the amount can sometimes be so outrageous and irritatingly hefty it can nearly wipe off the total net amount the heirs will be receiving from the estate of a deceased.

Oh yes, I have definitely encountered widows who wished their husbands have done some estate planning. It is even worse when people have failed to settle their estate taxes for the longest time so that penalties and surcharges have gravely and enormously accrued. This is such a frustrating tax condition because considering the grief/state the heirs might still be in, the last thing they need is the government telling them:   “We are sorry for the death of your loved one, but this is how much you owe us and you still have to pay us”.

Sadly, there is no way getting around it because we have to submit to the power of the government to tax us, even if we are already 6 feet below the ground. Don’t they say that tax, aside from death, is the only thing that is certain on earth? Talk about ironies.

That is why as property owner and/or prospective property owner it won’t hurt to know some key information about estate taxation. Apart from estate planning, (this was already discussed in previous blog) below are some deductions one should consider or prepare for to write off as deductions from the estate of a deceased or decedent.

A)   If the decedent is a Citizen or a Resident, the following deductions are allowed: 

1.    Actual funeral expenses or in an amount equal to five percent (5%) of the gross estate, whichever is lower, but not to exceed Two hundred thousand pesos (P200,000);

2.      Judicial expenses of the testamentary or intestate proceedings;

3.   Claims against the estate subject to certain documentary requirements such as i) duly notarized debt instrument executed at the time of indebtedness; and ii) if the loan was contracted within three (3) years before the death of the decedent, a statement showing the disposition of the proceeds of the loan;

4.   Claims of the deceased against insolvent persons provided such value is included in the gross estate;

5.    Unpaid mortgages upon, or any indebtedness in respect to, property provided the value of decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate.

6.    Property Previously Taxed. – this deduction is otherwise called vanishing deductions and involves a property previously taxed (for either donor’s or estate tax) because of the death and/or transfer of prior decedent to the present decedent. The amount to be deducted, equal to percentage value of the property, depends on time frame of the death of prior decedent from the death of present decedent. For example, if prior decedent died within one year to the death of the present decedent, the deduction is equal to 100% of the value of the property. Such value to be deducted vanishes by percentage as the time frame of death increases. Below is the table of percentage value to be deducted:

 100% - 1 year from death

                       80%   - More than 1 year from death but not more than 2 years

                       60%   - More than 2 years from death but not more than 3 years

 40%  -  More than 3 years from death but not more than 4 years

 20%  -  More than 4 years from death but not more than 5 years              

7.    Transfers for Public Use. – All amounts given as bequests, legacies, devises or transfers to or for the use of the Government of the Republic of the Philippines, or any political subdivision thereof, for exclusively public purposes.

8.   Family Home. - An amount equivalent to the current fair market value of the decedent's family home: Provided, however, That if the said current fair market value exceeds One million pesos (P1,000,000), the excess shall be subject to estate tax. This deduction shall be supported by a Certificate by the barangay captain of the locality.

9.    Standard Deduction. - An amount equivalent to One million pesos (P1,000,000).

10. Medical Expenses. - Medical Expenses not exceeding Five Hundred Thousand Pesos (P500,000) incurred by the decedent within one (1) year prior to his death which shall be duly substantiated with receipts.

11.  Amount Received by Heirs Under Republic Act No. 4917. - Any amount received by the heirs from the decedent - employee as a consequence of the death of the decedent-employee in accordance with Republic Act No. 4917: Provided, That such amount is included in the gross estate of the decedent.

Watch out for my next blog for allowable deductions in case the decedent is a non-resident of the Philippines.

Five (5) Rules You Should Know About Estate Tax.

There are times people have not yet gone over their grief or pain for the loss of a loved one and already have to deal with the tedium of document processing in connection with the properties/estate left behind by the deceased.

Properties of a deceased person cannot be transferred to his heirs without paying the necessary estate tax. Payment of the estate tax is based on the principle that the estate of the deceased is one juridical personality and its right to transfer property to the heirs is a privilege and is thus subject to transfer tax.

A return or estate tax form (BIR Form No. 1801) needs to be filed with the Bureau of Internal Revenue for the payment of the estate tax. Hopefully, the following guidelines can aid the heirs in sorting out the tiresome process of estate taxation.

1.       When to file Estate Tax Return

        The return must be filed within six (6) months from the death of the decedent.  In meritorious cases, the Commissioner has authority to grant a reasonable extension not exceeding thirty (30) days for filing  the return.

2.       Where to file Estate Tax Return

        The return must be filed with the BIR district office or its representative having jurisdiction over the place of domicile of the decedent at the time of his death. If the decedent has no legal residence in the Philippines, the return shall be filed with the Office of the Commissioner (Revenue District Office No. 39, South Quezon City).

3.       Who shall file the Estate Tax Return

          This return must be filed in triplicate by the executor, or administrator, or any of the legal heirs of the decedent, whether resident or non-resident of the Philippines. If there is no executor or administrator appointed, qualified, and acting within the Philippines, then any person in actual or constructive possession of any property of the decedent.

          Basically, a return is required to be filed in all cases of transfers where estate tax is due. However, where no estate tax is due, a return is still required where the gross value of the estate exceeds two hundred thousand (P200,000) pesos; or where regardless of the gross value of the estate, it consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the BIR is required (i.e. bank deposits) as a condition precedent for the transfer of ownership thereof in the name of the transferee; or

4.       When and Where to Pay Estate Tax

        Upon filing the return, the estate tax due is to be paid to the BIR authorized Agent Bank (AAB) where the return is filed. In places where there are no AABs, payment shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer.

         In certain cases, where the government finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, it may allow extension of time for the payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially.

               

5.       What docum

Who else wants to adopt?

Adoption in the Philippines can be very elaborate because the process involves social works and other professional services that are required in the placement of children in adoptive families. It comprises a lot of counselling and study for both the adoptive parent and child.

Before making a life-changing decision in your life you should consider the following information in connection with adoption.

There are three types of domestic adoption in the Philippines, namely:  i) Agency adoption; ii) Relative adoption and iii) Private adoption. Find out which is applicable to your circumstances.

Relative adoption is the easiest because this is where a biological parent merely makes a direct placement of his/her child to a relative of member of his/her extended family for adoption. On the other hand, Agency adoptions are those in which a licensed adoption agency finds and develops adoptive families for children who are voluntarily or involuntarily committed. The adoptive families go through the process from application to finalization of the child's adoption under the auspices of the Department of Social Welfare and Development or a licensed child-placing agency. Through this type of adoption, the legal rights of the child, the parents who gave birth to the child and the parents who will adopt the child, are all equally protected

While private or independent adoptions could either be a direct placement to a family known by the child's biological parents or through the use of an intermediary or a go-between. In an intermediary placement, an individual knows of parents who want to have their child adopted and arranges such placement to a family or someone who wants to adopt.

What are the components of domestic adoption?

This is the process involved in domestic adoption.

·         - Recruitment of potential adoptive families who may provide a home to a child;

·         - Development of adoptive applicants as parents to a particular child in need of a home;

·         - Selection of a family who can best contribute to the total development of a particular child;

·         - Preparation of the child and family prior to placement to insure acceptance and readiness for the new relationship;

·         - Supervision of trial custody for at least six months to facilitate the child's adjustment in the family prior to the completion of adoption;

·         - Preparation for removal of the child from the adoptive home if the placement disrupts while alternative plans are being worked out;

·         - Finalization of adoption and termination of service with issuance of the final decree of adoption and amended birth certificate;

·         - Organization of groups of adoptive parents as part of support system; and

·         - Post-legal adoption counselling when adoptive family and adoptee need further counselling related to information about adoptee's background and search for his/her biological parents.

Who may be adopted?

 The law on adoption says that the following may be adopted:

 1.      Any person below eighteen (18) years of age who has been voluntarily committed to the Department under Articles 154, 155 and 156 of P.D. No. 603 or judicially declared available for  adoption;

2.      The legitimate child of one spouse, by the other spouse;

3.      An illegitimate child, by a qualified adopter to raise the status of the former to that of legitimacy;

4.      A person of legal age regardless of civil status, if, prior to the adoption, said person has been consistently considered and treated by the adopters as their own child since minority;

5.      A child whose adoption has been previously rescinded; or

6.      A child whose biological or adoptive parents have died: Provided, That no proceedings shall be initiated within six (6) months from the time of death of said parents.

7.      A child not otherwise disqualified by law.

Who may adopt?

The following may adopt:

1.     Any Filipino citizen of legal age, in possession of full civil capacity and legal rights, of good moral character, has not been convicted of any crime involving moral turpitude; who is emotionally and psychologically capable of caring for children, at least sixteen (16) years older than the adoptee, and who is in a position to support and care for his children in keeping with the means of the family. The requirement of a 16-year difference between the age of the adopter and adoptee may be waived when the adopter is the biological parent of the adoptee or is the spouse of the adoptee’s parent;

2.    Any alien possessing the same qualifications as above-stated for Filipino nationals: Provided, That his country has diplomatic relations with the Republic of the Philippines, that he has been living in the Philippines for at least three (3) continuous years prior to the filing of the petition for adoption and maintains such residence until the adoption decree is entered, that he has been certified by his diplomatic or consular office or any appropriate government agency to have the legal capacity to adopt in his country, and that his government allows the adoptee to enter his country as his adopted child. Provided, further, That the requirements on residency and certification of the alien’s qualification to adopt in his country may be waived for the following:

(i) a former Filipino citizen who seeks to adopt a relative within the fourth (4^th) degree of consanguinity or affinity; or

(ii) one who seeks to adopt the legitimate child of his Filipino spouse; or

(iii) one who is married to a Filipino citizen and seeks to adopt jointly with his spouse a relative within the fourth (4th) degree of consanguinity or affinity of the Filipino spouse.

3.    The guardian with respect to the ward after the termination of the guardianship and clearance of his financial accountabilities.

4.    Husband and wife shall jointly adopt, except in the following cases:

(i) if one spouse seeks to adopt the legitimate child of one spouse by the other spouse; or

(ii) if one spouse seeks to adopt his own illegitimate child: Provided, however, That the other spouse has signified his consent thereto; or

(iii) if the spouses are legally separated from each other.

5.            In case husband and wife jointly adopt or one spouse adopts the illegitimate child of the other, joint parental authority shall be exercised by the spouses.

What are the documentary requirements in Adoption?

The following documents shall be attached to the petition:

A. Birth, baptismal or foundling certificate, as the case may be, and school records showing the name, age and residence of the adoptee;

B. Affidavit of consent of the following:

1.The adoptee, if ten (10) years of age or over;

2. The biological parents of the child, if known, or the legal guardian, or the child-placement agency, child-caring agency, or the proper government instrumentality which has legal custody of the child;

3. The legitimate and adopted children of the adopter and of the adoptee, if any, who are ten (10) years of age or over;

4. The illegitimate children of the adopter living with him who are ten (10) years of age or over; and

5. The spouse, if any, of the adopter or adoptee.

C. Child study report on the adoptee and his biological parents;

D. If the petitioner is an alien, certification by his diplomatic or consular office or any appropriate government agency that he has the legal capacity to adopt in his country and that his government allows the adoptee to enter his country as his own adopted child unless exempted under Section 4(2);

E. Home study report on the adopters. If the adopter is an alien or residing abroad but qualified to adopt, the home study report by a foreign adoption agency duly accredited by the Inter-Country Adoption Board; and

F. Decree of annulment, nullity or legal separation of the adopter as well as that of the biological parents of the adoptee, if any.

So if you are considering adoption, the process can be a lot easier for you if you know what to documents to prepare and how to go about the adoption step by step.