if filing for bankruptcy is the only way to postpone theft of land and home, how do i remain honorable when filing for ‘ALL CAPS NAME’?

In the US (territorial and municipal "government") oftentimes the only way to prevent an auctioning off of one's land and home after falling behind the (unlawful) mortgage or property tax payments is filing for bankruptcy. It is also used to postpone the sale date, and possibly prepare for court action in the interim.
In order for 'them' to steal a home the 'ALL CAPS NAME' or 'Territorial Name' is always used to create jurisdiction and bind the man or woman to it (in my current understanding).