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A forbearance is a workout option available to homeowners having a financial hardship. As the coronavirus pandemic drags on and strains Americans’ finances, 3.4 million homeowners were in forbearance in September of 2020. The typical terms of a mortgage forbearance are payments can be “skipped” for 90, 180, up to 360 days for those that are affected by COVID-19.

As a rule, most tax debts can’t be wiped out in bankruptcy—you’ll continue to owe them at the end of a Chapter 7 bankruptcy case or have to repay them in full in a Chapter 13 bankruptcy repayment plan. However, with any rule, there are always exceptions.

You’ll hear a lot of people impulsively say: “bankruptcy is bad.”

That is because they have not given much thought to it and their response is based on F.E.A.R. – False Evidence Appearing Real.

The last big bankruptcy reform in the United States—the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) that took effect in 2005—was bad for consumers. The law changes, which included the pre-filing credit counseling requirement, the means test for Chapter 7, and an increase in the required wait time between bankruptcies, was largely crafted by consumer lenders.

The events of the past year have turned a bright spotlight on racial inequities. But, the disparity in the consumer bankruptcy arena isn’t fresh news. Back in 2017, ProPublica conducted an in-depth study of race and bankruptcy. The news was discouraging, but unsurprising to seasoned bankruptcy attorneys.

Bankruptcy Filings by Race

The study data revealed that:

“Financial crisis” can mean many things. For an individual, a financial crisis might occur after a job loss or divorce. A serious illness or injury can trigger a financial crisis. Or, simple mistakes may snowball into a crisis, as interest and late fees mount and payments become unmanageable.

Chapter 13 bankruptcy offers a possible solution for people who have suffered a temporary interruption of income or are facing financial trouble because of large, but temporary expenses. For example, someone with stable income and assets to protect may be knocked off course by a period of unemployment. Alternatively, a person with stable income, a home, a nice car, and other property may face a medical crisis and end up with a pile of bills that do not fit in the budget.

Well—Finally 2020 is hind sight!! And hind sight is 2020! (or so they say) But 2020 has another “visual” meaning—Someone with 20/20 vision has “perfect” eye sight—clear vision. Both of these phrases can be a positive force as we move ahead into the new year—2021.

Foreclosures around the country jumped during October, with Alabama foreclosures near the top of the nation.

In the third quarter of 2020 (July through September), The Federal Reserve Bank of New York reported that there were about 16,000 new foreclosures, or about 5,333 per month–the lowest number since the New York Fed started assembling its quarterly Household Debt and Credit report in 1999. But, Attom Data Solutions is reporting a significant turn in the fourth quarter.