The Harper family in 2005 received the kindness of strangers and the home of their dreams from Extreme Home Makeover. Today that home has turned into the financial nightmare that so many people are facing today. The Harper's took the home that they received and used it as collateral for a $450,000 loan. Unfortunately the note has come due and there is not enough money to pay the bill. As a result the home will be sold at auction on August 5, 2008 to the highest bidder.

I checked the interactive map on Extreme Home Makeover and the Harpers are not listed as one of the homes on the map. It is critical that as our country continues to slide downward that every financial decision you make is a sound one. Do not think that you have to do this alone. With the advent of the Internet you can learn from all the experts.

One of the favorites is Dave Ramsey. If you are ready to learn the truth of financial management and you have the courage to make a change in your financial life then check out Dave Ramsey and gain control over your finances today.

Remember that knowledge is power and you alone have the ability to turn your life in any direction you choose.

Written by Kansas City Bankruptcy Attorney, Rachel Lynn Foley.

Absolutely not! The Bankruptcy Code has no provision within it that will rewrite or re-negotiate the terms of your mortgage. As a result of the sub-prime loans and all the adjustable rate mortgages, some people hope to jump into the Bankruptcy Court in order to re-negotiate a mortgage. This will not work; however, by reducing your debt in a Chapter 7 and reestablishing your credit or paying 12 months of Chapter 13 payments on time you may be able to refinance at a lower interest rate and have that rate fixed instead of being an adjustable amount. The key is to pay your bills on time from the very moment you file bankruptcy. On time means the contractual due date and not the grace period and keep your debt to income ratio below 36%.

See also Carmen Dellutri’s article Bankruptcy and Credit Reports - The real story.

The following are standard documents that the Trustee may and can request under the new code. All though the documents may seem overwhelming they will provide an accurate picture of your financial situation. It is imperative that you provide us with as much Information as possible so that we may fully protect your interests.

1. 7 months worth of pay statments or you can get a payroll report from your employer.
2. 2 years worth of tax returns.
3. Titles, registrations and contracts to vehicles, trailers, motorcycles --> anything requiring a title.
4. 6 month worth of bank statements.
5. Mortgage paperwork to your house --> it is generally all the paperwork in that legal size (long) folder the mortgage or title company gave you at the time of filing.
6. Lawsuit, foreclosure, attorney letters that have been sent to you.
7. An idea of what your budget runs each month for your basic living expenses.