Filing Bankruptcy In New Jersey Can Protect Most Retirement Accounts.

Unfortunately many consumers finally investigate the bankruptcy option only after cashing out all their retirement accounts. In the majority of situations these accounts are small amounts of money compared to the overwhelming debt the consumer is faced with when the sky rocketing interest and penalties are included.

Bankruptcy allows consumers who file for bankruptcy to protect typical IRAs, 401ks, and 403bs just to name a few. It is very honorable that people feel so strongly that they should pay back their creditors, after all they did use the credit cards; however, bankruptcy law takes into account that sometimes life just happens. Furthermore, creditors even after getting state court judgments against debtors cannot attach or liquidate retirement accounts in the State of New Jersey.

Although it is honorable to want to pay the debt you incurred back it is very often unrealistic and impossible. The majority of the time people file bankruptcy after really life altering changes like divorce, illness, or death of a loved one. Remember you will need to live beyond the life of the actual debt you incurred. That is, if you file bankruptcy and wipe out the debt you will need your retirement accounts when you retire. It is more likely than not that social security benefits will run out in our lifetime. Just keep that in mind before you prematurely liquidate your legally protected retirement accounts.

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