Be aware
that using equity debt to pay for your daily expenses, medical
care and big purchases, you are at the mercy of the creditors
should you eventually have to declare bankruptcy.
DO
NOT FALL INTO THE HOME EQUITY LOAN BANKRUPTCY.
In a
Chapter
7 bankruptcy,
you can walk away from unsecured debt, such as credit card balances.
But if your house secures those debts, you are stuck with paying
them. If you can't make the payments, you can lose the house
to foreclosure, and you won't see a dime of the sale proceeds
until
all the creditors are paid. It might be better to tap other sources
of money: savings, one's 401(k) or individual retirement account,
or stocks and bonds. Read
Wise
Use of Home Equity.
