When it comes to home improvement projects, visual examples can teach volumes. Thus enters home improvement television. These TV shows have been around for over two decades and recently there has been an increase in the number of these shows available. However, viewers be savvy, some of the new shows are more interested in entertainment than thorough craftsmanship. Loosely grouped, there are two styles of home improvement television: Classic - shows based on a model that details and examines craftsmanship and the tools craftsmen use; and Entertaining - shows that focus on the entertaining their audience with quick flashy project run-throughs that end in "before and after" snapshots. What follows is a quick review and guide to some popular home improvement television shows and their web sites. ________________________________ Contents: Introduction Part I: Professional Home Improvement Television - Web Site Summaries & Links Part II: Entertaining Home Improvement Television - Web Site Summaries & Links Conclusion & More Programs ________________________________ Part I: Classic Home Improvement Television The Classic home improvement television shows are based on a more traditional model of a television show that concentrates on craftsmanship and itemizes the details for many of the toughest home improvement projects. Viewers gain confidence that they can build the home they want or remodel that old home with personality. These educational programs are some of the longest running home improvement television shows; perhaps the classic model speaks for their longevity. The formula for these shows usually includes: knowledgeable host or hosts, experienced and professional crews, the best or the latest tools and/or materials and finally, a large project that spans over many episodes. This Old House is probably one of the most famous and longest running of the home improvement shows (this year is the show's 25th anniversary!). This program covers two major projects every year. During the larger projects, smaller projects are shown in detail and the latest tools and materials are examined. This Old House encourages homeowners to be creative and see the potential in their property. However, this program still utilizes the use of professional crews. This should not be lost on the viewer; if you are tackling a whole home makeover, it is best not to do it alone. Even the hosts of this show bring in outside experts to show them particular stages of the project. This Old House does demystify the renovation process and provides the homeowner with an inside look to what contractors, electricians, plumbers, and other building professionals do for various home improvement projects. This program gives the homeowner the confidence to hire and work with professional craftsmen on their dream home. Whereas This Old House examines home improvement on the larger scale, its recent counterpart, Ask This Old House, has the smaller do-it-yourself projects in mind. Most of the same crew from This Old House run this show as well: general contractor Tom Silva, plumbing and heating expert Richard Trethewey, and landscape contractor Roger Cook. Here they showcase their individual strengths and use the host of both shows, Kevin O'Connor, as their Guinea Pig and/or punch line. The jokes can be rather quirky and there a few groaners mixed in; however, the information that comes from this show is professional, thorough and easy to follow. The main scheme of the show is to answer questions that come from their viewers. They may answer questions in their studio or as a house call. The house call really illustrates how one may become a do-it-yourselfer as these gentlemen always make the homeowners get their hands dirty. Many times the homeowner does most of the project or completes it themselves after the foundation and technique are covered. This show also takes time to showcase the latest tools and materials. The short segment of 'What Is It?' challenges all the hosts to identify odd tools that can be used in home repair/improvement (enter the quirky jokes). Overall, this classic program gives homeowners a real thorough run-through on some common home repairs and improvements. Another show that uses the classic method approach to home improvement is Hometime. This show again tackles larger projects and showcases individual aspects of those projects. Viewers are encouraged to try home improvement projects but educate themselves first. Projects are covered in detail with tools and materials discussed. The techniques for completing the project are covered in detail as well. This serves to give the viewer a good knowledge base. There are only two aspects for viewers to keep in mind about this program. First, many of these projects work with a professional crew; however, the crew is not showcased. Instead the hosts spotlight most of the projects themselves. Many tasks highlighted can be completed by individual homeowners. However, because the professional crews are not as highlighted, some viewers might be mislead about the amount of work they will have to complete on their own. Second, viewer questions and projects are not answered individually. Instead, viewers may send in videos of projects they have completed which may or may not have been inspired by the show. Neither of these aspects are detrimental to the knowledge provided by this program. Hometime has been around for 19 years, it obviously has a format that works for educating viewers about home improvement. Home Again, hosted by Bob Vila, is another classic program that examines craftsmanship in home improvement. Similar to This Old House, which Bob Vila hosted from 1979-1989, this program covers roughly two major projects per season. Parts of the projects are shown in greater detail to showcase craftsmanship and/or technique. The professional crews that complete the large projects are at the forefront and the various specialists are interviewed throughout the show to help explain why they do a tasks a certain way, use this particular material, etc. This show again strives to educate the homeowner and encourage them to think of the possibilities for their home. As quoted from Bob Vila's site, he encourages the homeowner by letting them know, "You CAN build what you want. You CAN revive an older house to suit your personality. You CAN give your family more space. You CAN express your individuality through color and style…as long as you have the knowledge to use what works!" Thus, this show provides both knowledge and encouragement to the homeowner looking for home improvement help. These are only a few examples of the Classic home improvement shows on television. These shows are aimed at educating the viewer in the use of tools, types of materials available and the nitty-gitty facts about how to get some complex tasks done. It would be difficult to cover all the shows here. At the end of this article is included a list of more home improvement television shows and their web sites, take time to check them out and you might find a new favorite! Classic Home Improvement: Web Site Summaries & Links Same order as article. This Old House www.thisoldhouse.com/toh/ This show has been around for 25 years. On the main site you may see current or classic projects where the crew has worked on renovating and building homes inside and out. This show is not about quick fixes and flashy facades. Instead this show details good craftsmanship and the latest materials on the market to renovate a home meant to last. The web site does have web cams of current projects in the making. To check one out click here. Ask This Old House www.thisoldhouse.com/toh/tvprograms/asktoh A fun offshoot of This Old House is Ask This Old House. Although the humor is a bit quirky, there is great information for small home improvements and repairs. The show is great if you can catch it. Like all the other home improvement shows you can use the web site to get more detailed information about certain products or services highlighted in the show. However, if you want to look at the detailed how to information, you will have to subscribe to the magazine. Have a question of your own? You may send a question directly to them online. This question may be answered on the television show or in the magazine. Hometime www.hometime.com This site has project advice, information about the show and a variety of products to help you with all your project needs. Also find lists of vendors and their contact information for materials you see used on the show. The how-to tutorials on the web site are basic, however, they do offer more free information than many of the other home improvement shows. Check out the archives to find past episodes that relate to your own projects. Copies of programs can be bought and usually cover one individual tutorial or the whole series related to construction of one house project. This show is interested in the thorough education of its viewers and avoids quick fixes. However do not expect individual attention to your particular project; this show does illustrate how projects (i.e. tiling a bathroom) are done but does not tackle individual, viewer submitted homes/projects. There is a chance to submit video of your own projects as examples of creative improvements and modeling; to find out more click here. Home Again www.bobvila.com/BVTV/HomeAgain/ This web site provides a summary of each project. Also included are materials used and information to find vendors. A selection of video clips are available online to view segments of the show. These video clips are some of the most thorough and helpful out there on the web. It is a great way to catch bits of the show you missed. The entire project on video is available for purchase as well. Check around to the rest of Bob Vila's site, he showcases other programs he has done such as his Guide to Historic Homes of America on A&E and Restore America on HGTV. Also, his site gives great home improvement information all around and is worth the exploration. Part II: Entertaining Home Improvement Television Entertaining home improvement shows have followed the trend in reality television. They are fast paced and include someone who is real (for lack of better definition); a real homeowner who has asked for help. The projects vary in size from one room or area of the home to the entire house itself. These shows strive to be different from the other shows causing some pretty wild and exciting projects. However, attention to details are not the strong point; in fact some shows are in such a hurry to meet the show deadline that the craftsmanship for the project can suffer. However, these shows do offer splashes of ideas and push viewers to be creative, to keep thinking "outside the box." Extreme Makeover: Home Edition is a great example of entertaining home improvement. In this show the entire home and landscaping is made over. Professional crews have one week to makeover a home for deserving families that really need drastic improvements to their home because of a major life event. The show provides small hints on topics such as how to improve space or what can kind of add-ons can be done on certain homes. Each member of the design team takes the viewer through their area of the home and explains why certain things were done to improve the home. Most of the show covers the design aspect rather then the nitty-gritty of how the space was remodeled, walls taken out, etc. This show entertains the viewers showing them what home improvement can accomplish but it does little to give an actual foundation in any home improvement projects they may encounter. Another extreme makeover style show is Monster House. This show truly aims to push home improvement to the extreme. These homes are changed by a team into stylized theme homes; not theme parks, but pretty close! Those who volunteer to be on the show want a drastic remodel to their boring home. Be careful what you ask for! They get a home based off an interest or passion of theirs. This may include a roman villa retreat, a jurassic find or maybe even treating their dog to the ultimate doghouse! This show doesn't show too much on how too. There are a lot of ideas and you do get to watch some of the challenges the crew faces working on the home and with each other. An added bonus is the teams that work on the house vary. The teams must work together and under the time limit in order to receive prizes of their own. Entertaining to say the least! Home "improvement" is up to the viewer to decide. One of the most popular home improvement shows (and considered one of the reasons there are so many of theses shows today) is Trading Spaces. This show isn't traditional home improvement that learns how to fix plumbing or update wiring in an old home. This show is all about the surface elements. In the show two neighbors agree to renovate one room in the others home. With a limit in budget and time it is a mad dash to make renovations and add stylish design. One guest designer directs the project room for each house. Under their guidance, decorative and improvement features are added to the space. Sometimes there is a larger home improvement project involved, such as new flooring or counter tops. However, there is little detailed guidance to these projects and the neighborly teams just "go for it" as there is more concern for deadlines and looks than craftsmanship built to last. There are good aspects to this show as it has encouraged viewers to try new things and view their living space potential rather than limitations. The entertainment value is definitely there as the before and after on these projects are highly entertaining and the reactions of the homeowners are priceless. Finally, another example of an entertaining home improvement show is While You Where Out. In this program a family member sends a loved one away while they secretly renovate a part of the house for them. Like Trading Spaces, this show is more about design than classic home improvement. However, here the designers really look to please the family rather than shock them. In this way the homeowners really do a get a home improvement to their living space. However, due to budget and time constraints, many projects are done on the surface. Additions to the room that require intensive remodeling can unfortunately be rushed and given rough surface treatment. An extra human element is added to this show when loved ones must answer questions correctly to gain extra features for the redesign. This entertaining show can give viewers ideas but some of the rushed means-to-an-end should be viewed with caution. Entertaining home improvement shows have found a niche on television. They are fast paced and a final project is revealed for viewers in an hour or less. These shows do not illustrate traditional home improvement projects. They often cut corners or do surface fixes that are more concerned with appearance than lasting craftsmanship. Viewers should be careful not to be tricked into the "simplicity" of home improvement projects. However, these programs do offer encouragement to homeowners looking at tackling home improvement projects. In fact, these shows really encourage viewers to consider splashing their personality on the property they own. Homeowners are told not be afraid to try something new and push the conventional ideas they may have of what a home should look like. Entertaining Home Improvement: Web Site Summaries & Links Same order as article. Descriptions from show web site. Extreme Makeover: Home Edition http://abc.go.com/primetime/xtremehome/ Put together one very run-down house, a deserving family, several opinionated designers, seven days and what do you get? The answer is Extreme Makeover: Home Edition. The show's successful first season garnered an Emmy nomination for Outstanding Reality Program. As this ratings-rich reality series enters its second season, each self-contained episode features a race against time on a project that would ordinarily take at least four months to achieve, involving a team of designers, contractors and several hundred workers who have just seven days to totally rebuild an entire house — every single room, plus the exterior and landscaping. Monster House http://dsc.discovery.com/fansites/monsterhouse/ So. Tired of that same old living room? Well, you could slap a little paint on the walls, maybe. Or jazz things up with a brand-new throw rug. You might even slipcover that chewed-up old couch. Or ... you could call in Steve Watson and theMonster House crew. Sure, you and your family will have to move into an RV for a week and look on as a bunch of strangers tear apart everything you know and thought you didn't love. But remember: They have talents galore, sensitivity to your interests and an unlimited budget. Trading Spaces http://tlc.discovery.com/fansites/tradingspaces/ Ever sit in someone's home and wonder what would happen if you stripped, ripped and painted as you pleased? Find out during this one-of-a-kind decorating show when two sets of neighbors swap keys to transform a room in each other's home. They have two days, a set budget, and they're not allowed back into their own homes until the moment of truth. This is how-to with a neighborly twist. While You Where Out http://tlc.discovery.com/fansites/wywo/ ... a homeowner sneakily sends his or her partner, parent or roommate out of town for a couple of days as While You Were Out host Evan Farmer brings in a talented designer and two handy persons to work around the clock to create a new look for an indoor or outdoor space. Meanwhile, TLC surreptitiously videotapes the absent party during their getaway, gaining fodder for the pop-quiz portions of the show. Prizes are awarded based on the answers that could enhance the finished project — or not, depending on whether the at-home partner can correctly predict the answers of the partner who's "out." All of which leads to the big surprise at the end of each show, when the stunning transformation is revealed and the homeowner announces, "Look what happened While You Were Out!" Conclusion There are many home improvement television programs on the air these days. There are the classic style programs that concentrate on craftsmanship and the tools used for various home improvement projects. And there are the entertaining home improvement shows that showcase the human experience related to home projects. These entertainment programs show possibilities but relatively little know-how detail. Whichever style you prefer, there is plenty out there to choose from. If you still can't find enough there are now entire cable networks dedicated to the how-to market. These channels have plenty of home related programs to choose from. Before tackling the next home improvement project, sitting on the sofa watching TV might actually be a good place to start for education and inspiration! More Home Improvement Programs to Check Out (Descriptions provided by show web sites) American Home www.hgtv.com/hgtv/shows_hah05 American Home 2005 showcases innovations for the home that are so new they almost haven't happened yet. See the latest products and ideas, from materials to floor plans to appliances. Meet the builders, architects, designers and other experts who are setting the trends in the home industry. Before & After www.hgtv.com/hgtv/shows_baa Hosted by Pat Simpson, each episode profiles major home remodeling projects from start to finish. Past projects include turning a cramped 1950s concrete block home into a spacious New England summer home; adding a second story to a suburban ranch home from the '70s; and adding a wraparound deck to a '60s split-level. Before & After is all about turning eyesores into eye-openers. Do It Yourself Network TV www.diynet.com Again, for those of you that have cable, this station has a lot of different do-it-yourself projects and improvements for the house. Easily find all the shows that have aired pertaining to your project; you may even see when a particular project will air again. A lot of the show details from materials to individual steps are available online. For a complete list of shows go here: www.diynetwork.com/diy/pac_ctnt/text/0,2019,DIY_14161_16823,00.html DIY to the Rescue www.hgtv.com/hgtv/shows_dttr Got in over your head with a home improvement project? DIY to the Rescue can help finish the job! This special presentation from one of our sister networks, DIY Do It Yourself Network, brings in a team of experts to help real homeowners finish a problem project in around 48 hours. Fix It Up! www.hgtv.com/hgtv/shows_fix Do it yourself is the motto here, with a program that covers a wide range of self-help home projects. Topics range from tiling, refinishing projects and deck additions to landscaping and lawn care--and everything in between that today's do-it-yourself homeowner needs to know about. The early episodes are hosted by Pat Simpson and Amanda Rosseter, while newer episodes are hosted by Pat Simpson and Jodi Marks. Houselift http://home.discovery.com/fansites/houselift/houselift.html Houselift is a home remodeling show with a brand-new perspective — the homeowner's. Paul Hochman, the Today Show's gear expert, and his wife Tricia and their two children experience the fun, excitement, terror and tribulations every homeowner faces when they live through a major home construction project. Unvarnished, and with a healthy mix of humor and how-to, Houselift demystifies the home renovation process by putting Paul in the middle of the job. Each show features a key conflict and lots of learning for those considering a foray into this expensive, but ultimately rewarding, territory. Included in the mix are financial advisers, real estate agents, concrete experts and even a marriage counselor, who help Paul and Tricia through the process. Fun, engaging and educational, Houselift is a hit, literally in the making. In a Fix http://home.discovery.com/tuneins/inafix.html We know they mean well, those do-it-yourselfers. But what is that old saying about good intentions? The In A Fix team selects a home repair project that has gone terribly, shockingly wrong — gaping holes in ceilings and gutted kitchens. With a complicit spouse, In a Fix stages a dramatic "intervention" on the family handyman or woman in desperate need of help. During the hour, they not only fix the problem, they up the ante — a small fix becomes a major re-do. Michael Holigan's Your New Home www.michaelholigan.com Michael Holigan’s Your New House, seen on broadcast stations and cable by more than 2 million viewers every week. We promote tips and advice on how to build, buy and remodel the home through our TV show...serve as a source of expert advice and information for consumers on topics relating to: New home construction, The purchase and financing of new and existing homes, The purchase and financing of manufactured homes, Residential remodeling, Home improvement Renovate My Family http://www.fox.com/renovatemyfamily/ Hosted by best-selling author Jay McGraw, RENOVATE MY FAMILY is not just a home-improvement show - it's a life improvement program that visits families who have encountered some challenges along the way. Sell This House www.aetv.com/tv/shows/sell_this_house/ SELL THIS HOUSE™ gets inside the mind of the buyer and the heart of the seller with real life experiences and great advice on how to prepare your house for the market. Each week features homeowners desperate to sell and prospective buyers secretly videotaped as they express their observations upon first seeing the house. Enter a real estate and home decoration expert who recommends changes. In the end, the house is transformed (on a budget) and the buyers are brought back. Will the house sell? For how much? To whom? You'll learn the answers as participants experience the ups and downs of SELL THIS HOUSE™. Surprise by Design http://home.discovery.com/fansites/surprisebydesign/surprisebydesign.html As the saying goes, it takes two to tango. It also takes two — and a few willing friends and family members, if you want to get technical — when you've got a $2,500 budget and just one day to surprise someone with a redecorating or landscape project. That's where our dynamic design team of Rebecca Cole, Robert Verdi and Peter Gurski comes in. Toolbelt Diva http://media.home.discovery.com/fansites/toolbeltdiva/toolbeltdiva.html As the feisty host of Discovery Home Channel's new series Toolbelt Diva, Norma pairs up with female homeowners to tackle a variety of home-improvement projects. Toolbelt Diva proves that any woman can take on just about any home-improvement project, and it also has plenty of information and insight for the man of the house as well. Town Haul http://media.tlc.discovery.com/fansites/townhaul/townhaul.html In Town Haul, Gorder tackles the biggest challenge of her career. She's not just redesigning a living room, family room or bedroom, rather she's remodeling an entire town over the course of several weeks. In an eye-popping television event, she will oversee a team of skilled designers, carpenters and craftspeople as they work alongside townspeople to reimagine, repaint, repair and restore small towns across the United States. Weekend Warriors www.hgtv.com/hgtv/shows_war Weekend Warriors celebrates the do-it-yourself trend with a cinema-verite look at people planning, doing and completing weekend home-improvement projects. This series follows such do-it-yourselfers as apartment-dwellers, homeowners, couples, singles and families through the stages of a project to its successful (or even unsuccessful) completion. The focus is on the enthusiasm and the experience of the participants as they improve their home on their own.

No matter whom you talk to that is involved in a home sale transaction, whether it be the owner, buyer or real estate agent, everyone has a certain amount of reservation concerning a home inspection or “termite” inspection. But why, all that it entails is basically a visual inspection of the home and a short written report, right? So, who’s afraid of the big, bad home inspection? Everyone it seems!

Let me start by making an obvious observation. For most all of us, the single biggest investment we will make in our lifetime is the purchase of our own home. Not only is it an investment that we can’t have go sour, but we must make a comfortable, safe place out of the dwelling to protect and grow our families that we can live in happily and call “home”. And when we’ve outgrown or want a new/different home, we need to realize the equity we have built up in the property to help us purchase our next “home”. “OK”, you say, “I know all of this. What has this got to do with being afraid of home inspections?” Everything, actually, because it is well known that buying or selling a home is probably the second biggest stress we will encounter in our life. All the uncertainty and suspicions begin to “bubble to the surface” as the home sale process grinds on which skews our thinking, and sometimes our common sense. So, let’s look logically at what a home inspection has to offer for each participant in the home sale process. I want to start with the home owner who is thinking about moving and about to list his/her property for sale, because usually they are the ones that think they have nothing to gain from, and everything to loose from a home inspection. Nothing could be further from the truth.

No matter what “shape” the owner feels his/her property is in (good, bad or in between), the smartest thing they can do is spend the few dollars necessary for an accurate home inspection and “termite” inspection. Spending these few dollars in the beginning will save you major dollars and stress in the end. Possessing this information prior to listing your home for sale not only enables you to plan, but to price your property accurately. The information gleaned from the reports allows you to take care of any repairs that you feel you want to on your time schedule, and to obtain bids from various contractors for repairs you don’t want to tackle yourself, which could save you a lot of money in the process. When you do list your property for sale, you do so empowered with the knowledge that you know of, or have taken care of any repairs, and, you can go into negotiations with the buyer straight on because you have a “heads-up” on what the condition of your home is. This negotiating strength will allow you to realize as much of your equity as possible to be used to purchase your new home. Most real estate agents will appreciate this situation also because it takes most all the uncertainty and stress out of the equation, because, normally the inspection results are revealed shortly before escrow is to close and there is no time for obtaining bids or alternative actions, which can result in a “blown” deal with everyone unhappy.

Most everyone thinks that a home inspection and “termite” inspection are only for the “protection” of the buyer. That is only partly true. Sure the inspections are ordered to reveal any unknown/undisclosed issues. But, the buyer didn’t order and pay for the inspections to make the property out as garbage! The buyer likes and wants to spend and invest their hard earned money on the property and want to make it their “home”. As a prospective purchaser of a home and property, you want the inspection(s) to validate your decision to purchase that piece of property. You want to know what you are buying. You, of course, want to know what the big issues are, if any, but you also want to know the little things that will be an irritation or money drain before you sign the contract of sale. You want to make up your own mind as to what is acceptable as is, and what is not and needs to be negotiated with the seller. And just about as important, the home inspection is actually your first in depth “get acquainted” look at your new home because it covers information on so many of the homes’ components, systems, utilities and their locations. But even that is not all, if your home inspector is like most concerned inspectors’, he is your source for information you can turn to long after the close of escrow when everyone else involved in the deal has disappeared.

OK, I’m to the real estate agent and what the home inspection and “termite” inspection has to offer them. How about peace of mind? How about the good feeling inside that you have put together a home sale in which both the buyer and seller are happy and there is not going to be a bad case of “buyers remorse” now that escrow is closed? How about the fact that you are looked up to as an agent that demands full disclosure and still can close the deal BECAUSE EVERY BODY KNOWS WHERE THEY STAND AND WHAT THEY CAN EXPECT OUT OF THE DEAL! In the years I have been involved in inspecting homes, I can’t tell you how many times I have seen buyers follow through and close a sale of a home with major issues because they not only like the home, but because they are fully aware of its’ short comings and are mentally prepared to take it on. With truth and knowledge everyone comes out ahead. As I’ve been preaching for years, your buyer today is your seller tomorrow.

So in closing, there is absolutely nothing to fear from a home inspection or “termite” inspection except fear itself. These are “tools” to be used in a positive way to bring about a positive home sale experience, if you choose to use them in that way.
Ron Ringen owns and operates Ringen’s Unbiased Inspections, which is located in Sonora, California. Ringen’s Unbiased Inspections serves the beautiful gold country of California that includes the foothills and Sierra Mountains in the counties of Tuolumne, Calaveras and Amadore. Ron has been involved with the Structural Pest Control business for 43 years and has been a licensed Structural Pest Inspector in California since 1968. Ron is a licensed General Contractor (B) in California and has been since 1977. Ron is certified with the American Institute of Inspectors as a Home Inspector, Manufactured/Modular Home Inspector and a Pool and Spa Inspector.

In the course of inspecting a home, I often find open electrical splices in the crawl space and attic, and I cite them in my report. A splice, in layman’s terms, is a connection between two or more wires. These splices are normally made with a small plastic device resembling a thimble that is called a wire nut. The wire nut is twisted onto the wires, and holds them tightly together for a good connection. In accordance with accepted electrical practice, all splices must be inside an approved electrical box with a cover, and this box must be attached to the framing of the house and accessible. These boxes are either metal or plastic. The reason why splices must be inside a covered box is very simple. When electric wires become loose or overloaded, they can get very hot, and, in some cases, throw off sparks. If the wires are out in the open, they can drop sparks onto combustible materials or otherwise cause them to ignite. The electrical box is designed to contain the heat and sparks long enough for a fuse to blow or a breaker to trip. Crawl spaces are not very nice places to work, and the person doing the wiring is probably in a hurry to get out of there, and not interested in going back to place a cover on each box. Open splices are an invitation to disaster, and should be corrected as soon as discovered. If you suspect that your home has open splices in the crawl space or attic, have a qualified electrician correct the problem as soon as possible.

As of December 2007, bankruptcy filings are up 28% from last year and are expected to increase in 2008 due to the combined factors of high household debt and rising mortgage costs. American Bankruptcy Institute

This is the article that no one hopes to need and we would prefer not to write. The word 'bankruptcy' is weighed down by such doomsday words as failure, defeat, impoverishment...well, you're getting the depressing idea. However, it is not 'the end of the world' to declare bankruptcy. Instead of running away from this topic, it is time to demystify bankruptcy with a little 'Bankruptcy 101.'

What is bankruptcy?

For most people, bankruptcy is a way to get a fresh start after acquiring too much debt. Most individuals who file for bankruptcy will file under Chapter 7 or Chapter 13. Depending on which is filed, one may get most of their debt erased or work out a workable solution with lenders to pay off existing debt.

Are bankruptcy laws determined by Federal or State government?

Bankruptcy laws are made by the Federal government. States can pass laws that protect the "lender and debtor relationship" but they cannot regulate how a bankruptcy is processed or if it is to be granted.

Can all debts be erased?

No. Whichever type of bankruptcy is filed, there are certain debts that cannot be erased at all. These include alimony, child support, most student loans and legal judgments against fraud or criminal negligence such as a drunk driving accident. Some taxes may be erased, but not all. In fact, taxes have their own set of bankruptcy rules.

Do I need a lawyer?

When filing for bankruptcy it is important to find a bankruptcy lawyer who can help you navigate the process. Bankruptcy lawyers specialize in this area of law and are familiar with the distinct differences and effects of the process; they can be your greatest ally in a tough, seemingly bureaucratic system.

How long will bankruptcy effect my credit?

Bankruptcy will stay on your credit report for 10 years. There are ways to improve your credit rating and make yourself more appealing to lenders. For more information on this, check out this useful website: www.lifeafterbankruptcy.com. It is not an easy road back and those filing for bankruptcy should have a realistic expectation to work hard at their future spending practices.

Do I have to do debt counseling?

Yes. Under the new bankruptcy act passed in October 2005, it is now required that all persons applying for bankruptcy meet with a government qualified debt counselor first. After one has successfully filed for bankruptcy, the debtor must again meet with a counselor before the bankruptcy file will be closed.

What is Chapter 7 bankruptcy? (In a nutshell)

Chapter 7 bankruptcy is also known as a "liquidation of debt." A person can file for Chapter 7 every 8 years. This usually involves the liquidation of property to pay back debts. An appointed trustee sells all secured, non-exempt property for the debtor and distributes money raised among the lenders. Unsecured debts, such as credit card bills and most medical bills can be erased. This may mean the loss of secure debts such as a home. However, most states do have protections for debtors in place to insure they may keep life necessities such as clothing and some furniture. Retirement funds such as IRA's are also protected and debtors may keep these as well. After the changes to bankruptcy law in October 2005, many debtors may not get approved for Chapter 7 and be required instead to apply for Chapter 13. In short, if you still have an income and make more than the median for a household of your size in your state you may have to file for Chapter 13. To find out if you should be filing for Chapter 7 or Chapter 13, you can use a mean calculator like the one at legalconsumer.com. Again, this is where consulting a lawyer becomes very important.

What is Chapter 13 bankruptcy? (In a nutshell)

Chapter 13 bankruptcy is also known as a "reorganization of debt" or the "wage earners' plan." One can file for Chapter 13 more often as long as any previous filings are already closed. This is the bankruptcy for those trying to a find a way to get out of debt but still expect to pay off some of their debt. Generally speaking, if you still have a source of income and could make payments, just not the high ones you have now, you can be restructured into a debt payment plan under Chapter 13. This is the most likely to be used to try to stop a mortgage foreclosure. In this scenario, you can keep the house, car and more than you could under Chapter 7. There are limits to the amount of debt that can be restructured. If one is above those limits they would file under Chapter 11, however, the average American Joe/Jane is not in this category.

More Resources
US Department of Justice - US Trustee Program
www.usdoj.gov/ust/
A complete listing of approved credit counseling agencies is available through links on this Web page. [Listed by state.] www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
A complete listing of approved providers of financial management instructional courses is available through links on this Web page. [Listed by state.] www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm

American Bankruptcy Institute
www.abiworld.org
The American Bankruptcy Institute is the largest multi-disciplinary, non-partisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
www.govtrack.us/congress/bill.xpd?bill=s109-256

Bankruptcy Action
www.bankruptcyaction.com
The objective of this website is to provide the person, thinking about filing bankruptcy, the information he or she needs to make an informed decision.

Lawyers Listings
www.lawyerslistings.com/about.shtm
Our mission is to present to the Internet community an easy-to-use site in which to search for law firms and individual lawyers.

Life After Bankruptcy
www.lifeafterbankruptcy.com
On this website you'll discover everything I did to recover so quickly...and many other bankruptcy recovery and credit repair strategies you'll find nowhere else.

NOLO Bankruptcy Library
www.nolo.com
Nolo is your legal companion, empowering you and saving you money whenever the law touches your work, life or finances.

US Courts - Bankruptcy Basics
www.uscourts.gov/bankruptcycourts/bankruptcybasics.html 
Bankruptcy Basics provides basic information to debtors, creditors, court personnel, the media, and the general public on different aspects of the federal bankruptcy laws.

What can you do to prevent Bankruptcy?

1. Continue to take care of essential bills first: mortgage/rent, taxes, child support, and utility bills.
2. Eliminate frivolous expenditures. No more department store credit cards, cable TV, magazine and newspaper subscriptions, etc. Be honest about what you can live without with for a while. 
3. If you own your home, consider a home equity loan to get rid of high rate debts such as credit cards.
4. Watch your credit report. Close unused accounts, check for errors and resolve any questions with lenders immediately.
5. Know the warning signs: -Are you using credit cards to pay off bills or credit cards? -Are you borrowing against unprotected debt? i.e. Are you borrowing from a credit card to pay the mortgage? When you see you are bouncing debt around and not making any headway, it is a good time to look at credit counseling.
6. Warning about credit counseling: If you choose to do debt consolidation recognize that it will effect your credit score. Also, make sure you understand how the payments will work and if you can really make the payment - sometimes they are set too high!
7. Avoid aggressive lenders. If you begin to get offers for loans that sound too good to be true - they are! There has been a big push to penalize aggressive lenders who only help people acquire more debt. However, they are still out there and you should be a careful shopper of any loans you take.

Q. About six months ago we bought a new home and the builder provided a one year home warranty. Recently we discovered a defect, but when we contacted the builder, he said that because we did not discover the defect during the final walk-through that it would not be covered under the warranty. Is this common practice?

A. No, this is definitely not common practice. Most builders will repair defects that are found at any time during the warranty period, provided that they are covered by the terms of the warranty, and are obviously the fault of the builder. Read your warranty contract carefully to see if you are indeed bound by the condition your builder is citing. He may be counting on the fact that you have not thoroughly read the contract. In any event, you may want to seek the advice of an attorney. When inspecting a new home, I always advise my clients to discuss the terms of the home warranty with the builder before closing, and to make sure that they fully understand those terms and conditions.

Q Our home inspector reported that three windows in our 9 year old house had fogging insulated panes, and he suggested that we contact the builder or manufacturer for warranty information. We contacted the manufacturer who sent a man out, but he said that only two of the windows were fogged. When we called the inspector, he said that insulated windows will fog only under certain conditions, and that we look at the windows at the same time of day that they were inspected. Is our inspector a bit foggy in the head?

A It has been my experience that insulated window panes, when the seal is broken, will fog only under certain conditions. The two pieces of glass in a double-pane window have an inert gas between them which is held in place by a seal. This thin space of gas is what allows the windows to slow down the transmission of heat or cold. When this seal is compromised, ordinary air is allowed to enter, and moisture may condense on the inside surfaces of the glass. These types of windows are most likely to fog on a winter morning a short time after the sun hits them. The outside of the window has been cold overnight, and the inside has been warm. When the sun hits the cold outer glass, moisture condenses and the foggy appearance occurs. A few hours later, as the temperatures stabilize, the fog may disappear altogether. In this case, the inspector was correct to suggest that the windows be inspected under the same conditions. In the case of your 9 year old house, your windows may still be under warranty. The earlier versions of insulated windows were somewhat prone to failure, but technology has steadily improved, and today’s windows are much more reliable. Warranties have gotten much better as well, so it you have foggy windows, check with the manufacturer to see if you can have them replaced under warranty.