If you’re experiencing financial difficulties, well-meaning friends and relatives may try to give you advice.  As you no doubt do with any piece of advice given to you by your Uncle Ernie, disregard it.  It may not help you, and worse, it may hurt you.

Here are some examples of advice you should not follow:

• Get a home equity loan to pay off your credit card debt.

 
Bad idea.

In Las Vegas, a home equity loan is secured debt.  Credit card debt, on the other hand, is unsecured.  What this means is that if you file for individual bankruptcy in Las Vegas, your debts to your credit card company will likely be discharged, but your debts for your home equity loan will not.  You’ll have to pay it back.

• Sell your belongings.

 
Don’t do this.  First of all, you won’t make nearly as much for your property as it’s worth.  At a garage sale, the DVD player you bought less than six months ago has already been replaced by newer technology, and you’ll be forced to sell it for a fraction of what you bought it for.

Secondly, and more important,  if you end up filing for bankruptcy, Nevada law exempts a substantial portion of your property, meaning that your creditors won’t be able to touch your things.  For example, if you file for Chapter 7 or Chapter 13 bankruptcy in Las Vegas or anywhere else in Nevada, you’ll be able to keep $3,000 worth of appliances, household goods, furniture, and home and yard equipment.  Do you really think you could make more than that at a garage sale?

If you are thinking about filing for individual bankruptcy in Las Vegas, you need to talk to an experienced bankruptcy lawyer.  Contact our offices at 702-745-8327 to schedule a free initial consultation with our bankruptcy attorneys.  We’ll let you know how a bankruptcy filing can help you get a fresh start on your financial life.