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  At a garage sale, the DVD player you bought less than six months ago has already been replaced by newer technology, and you’ll be forced to sell it for a fraction of what you bought it for.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 1-800-LAWYERS to schedule a free initial consultation with our bankruptcy experts.  We’ll let you know how a bankruptcy filing can help you get a fresh start on your financial life. 

You’ve probably never heard of Prive Las Vegas or The Living Room, two of Las Vegas’ most popular clubs.  You’ve also probably never danced on a tabletop or enjoyed jello shots off of strangers’ various body parts.   Of course not.  When you’re not at work, you’re at home caring for your children or simply enjoying a good novel.  Us too.

Wink wink.

Not that we have any reason to be relieved because we never, ever frequent nightclubs, but word is out that although the clubs’ Las Vegas parent company, Prive Vegas, LLC, filed for Chapter 11 bankruptcy a few short weeks ago, both clubs will still be open while the parent reorganizes. 

Apparently, the clubs were cited for three violations last year, including topless dancing.  Just this past summer, their liquor license was revoked.  Since then, new managers have stepped in, and while police investigate their backgrounds, the clubs are operating under a temporary liquor license. 

Not that any of that is relevant to us, of course.  We’re just a couple of Las Vegas bankruptcy attorneys hoping to broadcast some Las Vegas bankruptcy information. 

Nudge nudge.

There is a minimum amount of debt required to file bankruptcy.

Not so. There is no debt threshold you must meet in order to file bankruptcy. Bankruptcy is essentially a legal declaration that you are unable to pay your obligations. That determination varies from case to case.

You can’t keep your home or car if you file bankruptcy.

False. In fact, many individuals file for bankruptcy protection in order to save their homes from foreclosure or their vehicles from repossession.

Taxes cannot be discharged in bankruptcy

Incorrect. While it is true that taxes are difficult to discharge in bankruptcy, it is possible to discharge tax debt under certain circumstances. If you have tax debt, discuss your options for repayment and discharge with a seasoned bankruptcy attorney.

Medical bills can’t be discharged in bankruptcy

Absolutely wrong. Medical bills are generally among the easiest type of debt to discharge in bankruptcy.

All of your debts are erased in bankruptcy

This is a dangerous myth. Not all debts are discharged in bankruptcy. Family support obligations and student loans are two examples of debts that are generally non-dischargeable (although certain exceptions exist). It is important to discuss all of your debts with your bankruptcy attorney to determine which debts can be discharged in your bankruptcy case.

You can’t get credit after a bankruptcy

No way! Debtors in bankruptcy are surprised to receive legitimate credit offers in the mail even before their bankruptcies are discharged. Rebuilding your credit after a bankruptcy is an important issue and should be discussed with your attorney.

You can choose who you file bankruptcy against

This is inaccurate. Federal bankruptcy law mandates that the debtor list all creditors on the bankruptcy schedules. There are several different ways that a debt may survive the bankruptcy (e.g. a non-dischargeable debt, or the debtor executing a reaffirmation agreement). Non-disclosure of a debt may prevent a discharge of your other debts and could land you in criminal trouble for bankruptcy fraud!

You can only file bankruptcy once.

Erroneous! Under the current bankruptcy laws an individual debtor can file a chapter 7 bankruptcy every eight years. An individual who has received a chapter 7 discharge may also receive a chapter 13 discharge after four years.

Don’t rely on second-hand information. Get the facts during your Free Consultation from Haines and Krieger.

BAPCPA Man continues his battle to save a homeowner from foreclosure against the intimidating Mortgantua.

(Note:  BAPCPA Man cartoon re-posted by Haines & Krieger with expression permission from the creators of BAPCPA Man.)

Bankruptcy fraud is a federal felony that carries a sentence of up to five years in prison and/or a fine of up to $250,000.  Some examples of bankruptcy fraud include concealing assets, intentionally filing false or incomplete forms, and providing false information while under oath.  Often bankruptcy fraud is accompanied by other serious offenses like identity theft, mortgage fraud, tax fraud, or money laundering.

Bankruptcy fraud can become very complex and may involve the IRS or FBI.  The penalty may involve many years of incarceration when coupled with other criminal charges.  Other cases are relatively simple like a recent case in Pennsylvania:

A husband and wife were each sentenced to fifteen days in prison by U.S. Magistrate Judge J. Andrew Smyser in the Middle District of Pennsylvania after finding contempt of court for untruthful conduct in their joint bankruptcy case.

According to a press release issued by the U.S. Attorney’s Office, Tammy Beecher and Wyatt Beecher filed a chapter 7 bankruptcy petition in May 2007.  The filing stated that the Tammy Beecher had no income and that neither debtor operated a business within the previous six years.  In fact, the Beechers owned a family business, "Fun 4 Kids Entertainment."  Only after the Beecher’s were presented with a coupon for $5 off any party, and reminded by the chapter 7 trustee they signed the bankruptcy petition under penalty of perjury, did the Beecher’s admit that they owned and operated the business.

Bankruptcy fraud can be reported by ex-spouses, banks, and even your neighbors.  The Executive Office of the United States Trustees (EOUST) recently launched an internet site that will allow the public to report suspected instances of bankruptcy fraud to the EOUST at http://www.usdoj.gov/ust/eo/fraud/index.htm. 

The moral here is: tell your bankruptcy attorney everything.  Your attorney can work with you to protect your assets and avoid criminal charges, but only if you tell all.  The information you share with your attorney is shielded by attorney-client privilege, a powerful and time-honored protection.  While your attorney cannot counsel or assist you in an illegal act, there are many legal options available in every case.  If you are in over your head, Attorneys George Haines and David Krieger and their team of bankruptcy professionals are ready, able and willing to help you understand your legal options. Contact us today for a free consultation.

Bankruptcy fraud is a federal felony that carries a sentence of up to five years in prison and/or a fine of up to $250,000. Some examples of bankruptcy fraud include concealing assets, intentionally filing false or incomplete forms, and providing false information while under oath.  Often bankruptcy fraud is accompanied by other serious offenses like identity theft, mortgage fraud, tax fraud, or money laundering.

Bankruptcy fraud can become very complex and may involve the IRS or FBI. The penalty may involve many years of incarceration when coupled with other criminal charges. Other cases are relatively simple like a recent case in Pennsylvania:

A husband and wife were each sentenced to fifteen days in prison by U.S. Magistrate Judge J. Andrew Smyser in the Middle District of Pennsylvania after finding contempt of court for untruthful conduct in their joint bankruptcy case.

According to a press release issued by the U.S. Attorney’s Office, Tammy Beecher and Wyatt Beecher filed a chapter 7 bankruptcy petition in May 2007. The filing stated that the Tammy Beecher had no income and that neither debtor operated a business within the previous six years. In fact, the Beechers owned a family business, "Fun 4 Kids Entertainment." Only after the Beecher’s were presented with a coupon for $5 off any party, and reminded by the chapter 7 trustee they signed the bankruptcy petition under penalty of perjury, did the Beecher’s admit that they owned and operated the business.

Bankruptcy fraud can be reported by ex-spouses, banks, and even your neighbors. The Executive Office of the United States Trustees (EOUST) recently launched an internet site that will allow the public to report suspected instances of bankruptcy fraud to the EOUST at http://www.usdoj.gov/ust/eo/fraud/index.htm. 

The moral here is: tell your bankruptcy attorney everything. Your attorney can work with you to protect your assets and avoid criminal charges, but only if you tell all. The information you share with your attorney is shielded by attorney-client privilege, a powerful and time-honored protection. While your attorney cannot counsel or assist you in an illegal act, there are many legal options available in every case. If you are in over your head, attorneys George Haines and David Krieger and their team of bankruptcy professionals are ready, able and willing to help you understand your legal options.  Contact us today for a free consultation.

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