Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until February 28, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on January 31, 2021.

Filing for bankruptcy is not as bad as many people make it look. While it isn’t a high point in any person’s life, it doesn’t have to be the lowest of lows either. Bankruptcy gives you the opportunity to put all your affairs in order and move on with a successful repayment plan. Unfortunately, there are a plethora of misconceptions that people harbor against bankruptcy, which affects their judgment. 

Many of my clients are married and have credit cards that at least look like they are joint cards. It can be confusing to figure out which of the two of them is obligated on a credit card.

There are two types of bankruptcy usually used by individuals -- Chapter 7 and Chapter 13. Either can help you deal with your finances. Chapter 13 is a payment plan type bankruptcy, that lets you pay your bills, or a portion of your bills, over three to five years. Chapter 7, on the other hand, wipes out your dischargeable debt without a payment plan, and usually takes about four months.

Debt can be a handy tool for purchasing property or assets that you cannot finance in a lump sum. At the same time, it can become a burden if your income is reduced, you lose your job, or take on more debt than you can handle. In the event of excessive debt and absolutely no way out, your last resort is to apply for bankruptcy.