If you have outstanding debt, you may be receiving countless phone calls from unknown parties claiming that you owe them. They may even threaten to sue you or initiate some other type of action against you. This behavior can be considered creditor harassment and is illegal. Creditor harassment became such a widespread problem in our country that the government passed the Fair Debt Collection Practices ACT (FDCPA) in 1977. This is a federal law that protects consumers from improper collection practices that constitute harassment, abuse, and deception. You can contact our lawyers for help fighting harassment and potentially pursuing compensation for the violation of your rights. Seek help from our experienced bankruptcy lawyers by calling Young, Marr, Mallis & Associates at (609) 755-3115 for a free case review. What Constitutes Creditor Harassment in New Jersey? Creditor harassment happens when a collector tries to acquire payment for a debt through intimidation, abuse, bullying, or coercion. In many cases, creditor harassment occurs through repeated phone calls to debtors. However, it is not limited to phone calls. Collectors can also harass individuals through text, mail, email, or by speaking with debtors’ friends and family members. There are many ways that collectors can recover the money they are owed, including a collection lawsuit. Still, there is a line they cannot cross. If you are being harassed by creditors, call our bankruptcy attorneys for help fighting back. Summary of the Fair Debt Collection Practices Act The FDCPA was originally passed in 1977 and amended in 1996. It was enacted as a response to a high number of complaints regarding collection agencies who were using improper methods to force people into paying their debts. This act applies specifically to collection agencies, as opposed to original creditors. It establishes that collectors cannot engage in conduct that constitutes harassment, deception, or unfair practices. There are several practices that may constitute harassment under the FDCPA. For instance, threating debtors with violence or using obscene language against them will be considered harassment. Furthermore, collection agencies may harass debtors by calling them repeatedly. The FDCPA outlines several prohibited practices that are considered deceptive. For example, a collector cannot pretend to be an attorney or threaten legal action that they never intend to take. Debt collectors are required to inform debtors that they are indeed collectors and that information provided to them may be used for the purposes of debt collection. Finally, there are also many actions that are considered unfair under the FDCPA. For instance, depositing post-dated checks, threating to take property that is not secured by a debt, and sending a letter that includes a reference to debt collection are all prohibited, unfair practices. The FDCPA allows for debtors to recover up to $1,000 from collectors who violate these laws. Furthermore, the act affords the Federal Trade Commission the power to bring enforcement actions against debt collection agencies who act improperly. How to Stop Collection Agencies Who Harass You in New Jersey You may be able to sue a debt collector who acts in violation of the FDCPA. Still, it is important to remember that harassment does not mean you no longer have to pay the debt you owe. You should not ignore any court summons or other legal documents you may receive pertaining to your outstanding debt. When filing a lawsuit against a debt collector, you must provide evidence of their harassment. Accordingly, you should keep track of all calls and correspondence that they the collection agency made. Furthermore, you should record the time and date for each correspondence and a detailed description of what was said. Proving that a pattern of harassment occurred will be more convincing for your case than identifying a single instance of improper conduct. Limitations Regarding When and How You May Be Contacted by Collection Agencies in New Jersey There are certain restrictions regarding when and how you may be contacted by collectors. For instance, a debt collector cannot contact you at inconvenient places or times. For example, you cannot be contacted before 8am or after 9pm unless you specifically agree to it. Furthermore, a collection agency cannot contact you at work if they have been told not to do so. If you informed collectors that you cannot be contacted at work, then they may only reach out to your place of employment to verify your address or other contact information. When doing so, they cannot let your employer know that you owe a debt. Finally, if you are being represented by an attorney in connection with your debt, then collectors must contact your attorney instead of you. If you do not have a lawyer, then collectors may contact other parties like friends and family members. However, when contacting other parties, they can only inquire about your address, your phone number, or where you work. Generally, collection agencies are not permitted to discuss your debt with anyone other than your lawyer and you. Should You Hide or Avoid Debt Collectors in New Jersey? If you are contacted by a collection agency regarding a debt that you owe, you should speak with them at least once to see if the issue can be resolved. Even if you think that you have been contacted by mistake or are sure you cannot pay the debt right away, you should not ignore the collector. To stop a collector from harassing you, you should inform them in writing that you no longer wish to be contacted. When mailing your letter to a collector, you should send the original through certified mail and keep a duplicate copy for your records. After they receive your letter, the collector may not contact you again unless they are merely letting you know there will be no further contact or are informing you that they are taking a specific action, like filing a lawsuit against you. If You Are Being Harassed by Creditors in New Jersey, Call Our Lawyers for Support Seek assistance from our experienced New Jersey bankruptcy attorneys by calling Young, Marr, Mallis & Associates at (609) 755-3115 for a free evaluation of your case.

Bankruptcy is a legal proceeding that is initiated when a person or business is unable to pay their debts. After declaring bankruptcy, your debts will either be erased, or a repayment plan will be established. Chapter 7 bankruptcy, known as “liquidation bankruptcy,” is generally the quickest and most common form of bankruptcy. When you file for this type of bankruptcy, most of your unsecured debt including credit card debt, personal loans, and medical bills will be discharged by a bankruptcy court. However, certain forms of debt like student loans, alimony, tax debt, and child support will not be erased. If your debt has piled up and you are considering filing for bankruptcy, get help from our bankruptcy lawyers at Young, Marr, Mallis & Associates by calling (609) 755-3115 for a free case review. What is the Process for Filing Chapter 7 Bankruptcy? Chapter 7 is typically the quickest form of bankruptcy that you can file for. Still, it involves filing a variety of documents and paying an assortment of fees. First, you will begin the process by filling out forms that detail records of income, assets, expenses, liabilities, and your overall financial standing. The next step for declaring Chapter 7 bankruptcy will involve enrolling in a pre-bankruptcy credit counseling course. This course may cost between $20 and $100 and are usually offered by nonprofit credit counseling agencies. These agencies will examine your financial standing, weight your options for debt management, and determine if there are other potential solutions to your problems. If it is still determined that filing for bankruptcy is the best way forward, then you will take the forms that you filled out during the first step and file a petition for bankruptcy at a local bankruptcy court. After filing a petition for bankruptcy, a court-appointed bankruptcy trustee will begin managing the process. They will arrange a meeting between you, your creditors, and your attorney if you have one. At this meeting you will likely have to answer questions from your creditors and the trustee regarding your bankruptcy finances and forms. Once your documents have been thoroughly reviewed, your eligibility for Chapter 7 bankruptcy will be determined. If you are determined to be eligible for Chapter 7 bankruptcy, then the trustee will begin identifying property that can be sold to satisfy your debts. The proceeds from your sold assets will go to your creditors. However, certain items that are necessities of modern life are exempt from being collected. For example, motor vehicles, reasonably necessary clothing, and household appliances may be protected. Approximately 3 to 6 months after filing your petition for Chapter 7 bankruptcy, your case will be discharged. This means that your eligible debts have been forgiven and your case will be closed. Still, the path to resolution after declaring bankruptcy can be complicated and frustrating. Support from our experienced Pennsylvania bankruptcy lawyers can be highly beneficial when navigating each step of the process. Steps to Avoid When Preparing to File Chapter 7 Bankruptcy There are certain actions you can take that may complicate the process for filing Chapter 7 bankruptcy, making you wait longer for your case to be resolved. First, you should avoid paying creditors in the months before filing bankruptcy. This may be confusing, but any unusual or large payments could be interpreted as “preferential transfers” that indicate one creditor gained unfair benefits over the others. You should also avoid taking on any new debt while preparing to file for Chapter 7 bankruptcy. A new creditor may assert that you ran up your credit card balance or took a loan without the intention to pay it back. Legally, this can be interpreted as fraud. Furthermore, any unusual transactions you perform like transferring titles of cars or homes may also be considered acts of fraud. Do not try to hide anything from your collectors when filling out your bankruptcy forms. You must be complete and truthful when disclosing your accounts, assets, debts, and other financial information. Some people may attempt to destroy certain documents related to their debt. However, actions such as this can be caught easily by trustees. Finally, you should safeguard your retirement funds and keep them safe while considering filing for Chapter 7 bankruptcy. These funds are typically protected from bankruptcy proceedings, so you should not use them to pay your debt. What Are the Other Forms of Bankruptcy? While Chapter 7 bankruptcy is generally the quickest and most common form of bankruptcy, there are other forms that may be right for you depending on your situation. For instance, while Chapter 7 bankruptcy forgives your debts, Chapter 13 bankruptcy will reorganize it. When you file for Chapter 13 bankruptcy, the court will approve a monthly payment plan that allows you to pay back a portion of your debt over a certain period of time. Unlike Chapter 7, this form of bankruptcy allows for you to keep your assets and catch up on debt that has not gotten completely out of hand. Chapter 11 bankruptcy is most often filed by businesses. When businesses file for Chapter 11 bankruptcy, they will come up with a plan for how they can continue operating while paying off their debt. This plan must be approved by both creditors and the courts. Chapter 12 bankruptcy applies specifically to family farmers and fisherman. This form of bankruptcy is slightly more forgiving than Chapter 13 bankruptcy and allows for higher debt limits. It allows debtors to potentially avoid selling all their belongings and refrain from foreclosing on their properties. Chapter 15 bankruptcy deals with international bankruptcy issues. It allows for foreign debtors to access the U.S. bankruptcy courts. Finally, Chapter 9 bankruptcy is another form of bankruptcy that establishes a repayment plan for debtors. This form specifically allows for towns, cities, and school districts to reorganize their debt and pay back what is owed. If You Think You Need to Declare Bankruptcy, Call Our Law Firm for Help Seek guidance from our experienced Philadelphia bankruptcy attorneys at Young, Marr, Mallis & Associates by dialing (609) 755-3115 for a free case assessment.

 TD Pelmedia has an article about bailout packages for small business. The article can be found athttps://tdpelmedia.com/federal-government-bailout-packages-for-small-businesses-what-you-need-to-know/At Shenwick & Associates we help many clients with too much debt or not enough capital.Jim Shenwick, Esq.   917 363 3391  [email protected] click the link to schedule a telephone call with Jim Shenwickhttps://calendly.com/james-shenwick/15min

The money held in your 401(k) is yours to withdraw, provided you are fine with incurring a tax on withdrawn funds if you have not yet reached retirement age. That doesn’t mean that debtors should borrow funds from a 401(k) to pay off debts in an attempt to avoid bankruptcy. You can withdraw funds from your 401(k) to avoid filing for bankruptcy if you want to. However, those withdrawn funds might incur a 10% tax, impacting your retirement account more than you might have anticipated. If you instead file for Chapter 7 bankruptcy, you can protect your 401(k) by claiming federal or state exemptions. While Chapter 13 bankruptcy requires repayment over several years, debtors shouldn’t have to borrow from a 401(k) to meet payments as they are determined by a debtor’s income, not retirement assets. To schedule a free and confidential case evaluation with Young, Marr, Mallis & Associates, call our Pennsylvania bankruptcy lawyers today at (609) 755-3115 or (215) 701-6519. Can I Borrow Money from My 401(k) to Avoid Filing for Bankruptcy? If you are dealing with overwhelming debt and do not have a sufficient income to meet payments on time, leading to more debt, know that turning to your 401(k) is unnecessary. While debtors can borrow from a 401(k) to avoid filing for bankruptcy, doing so is typically not a good idea. The most amount of money many people have at any given time is held in their 401(k) plans or other retirement accounts. These accounts are meant to fund your future as you age, not to support you financially before retirement. Because of this, borrowing money from a 401(k) before a person has reached a certain age will likely come with taxes. People who withdraw funds from a 401(k) before they reach age 59 and a half will incur 10% tax on withdrawn funds. This is because any money borrowed from this type of account before retirement is considered an unqualified withdrawal. So, to borrow money that will address debt if you are under the age threshold, you will have to withdraw more money than you actually need to account for the 10% tax. This might ultimately deplete your retirement account. That said, borrowing from your 401(k) might seem like the only option if you do not have disposable income to put toward paying off debt. To make it so that you do not have to borrow from your 401(k), our West Chester, PA bankruptcy lawyers can assess your finances to determine whether bankruptcy might suit you. Upon looking at your financial situation, it might become clear that either Chapter 7 or Chapter 13 bankruptcy meets your needs and can help you manage your debt in a timely fashion. Will I Have to Borrow Money from My 401(k) to Make Payments While in Bankruptcy? While one type of bankruptcy, Chapter 7, satisfies debt via asset liquidation, another, Chapter 13, gets the same result through repayment plans. This method allows debtors to address debts via consolidated payments at lower interest rates. If your income is tight yet you still qualify for Chapter 13, you shouldn’t have to borrow from your 401(k) to meet scheduled payments. Debtors that file for Chapter 7 bankruptcy won’t have to worry about borrowing from a 401(k). Instead, they will repay creditors by liquidating their assets, and retirement accounts are typically protected from liquidation. Chapter 13 bankruptcy is a different story. While you won’t have to liquidate your assets to pay back creditors, you will have to repay them using a repayment plan. To qualify for this type of bankruptcy, your income has to pass a means test. Income doesn’t include 401(k) plans, so the money in your retirement account won’t be considered when determining the amounts of your monthly payments. That said, things can change during the three to five years you are under Chapter 13 bankruptcy. You might lose your job or have a change in income that alters your ability to make scheduled payments. Instead of borrowing from your 401(k) in this instance, our attorneys can take a second look at your repayment plan and adjust it so that you can make payments according to your new income. Do not assume that you should have to borrow from your 401(k) at any point during bankruptcy, as you may be able to safeguard those funds. Can I Protect My 401(k) if I File for Bankruptcy? While many people view bankruptcy as a scary thing that should be avoided at all costs, it can be used to help debtors protect certain assets, like 401(k) plans, from creditors seeking repayment. Filing for bankruptcy can allow you to settle your financial difficulties now so that you don’t have to deal with them later. When you file for bankruptcy, you can take intentional steps to protect your 401(k). Our attorneys can help you claim exemptions if you file for Chapter 7 so that your 401(k) is not vulnerable to liquidation. While 401(k) plans are generally protected from seizure from certain creditors, other retirement accounts may not be given the same protections. In fact, IR As and Roth IR As are typically only protected from seizure when debtors file for bankruptcy. Risking the safety of your 401(k) because you want to avoid filing for bankruptcy might result in you borrowing from your account at high rates, ultimately leading to an unsatisfactory outcome. Filing for bankruptcy provides you with the time and resources to make a plan moving forward that addresses your financial situation in its entirety so that you do not have to borrow from your 401(k) or jeopardize its ability to support you financially into your retirement. Speak with Our Lawyers Today About Filing for Bankruptcy For a free and confidential case evaluation with Young, Marr, Mallis & Associates, call our Philadelphia bankruptcy lawyers today at (609) 755-3115 or (215) 701-6519.

 ● Jim Shenwick, Esq has  a specialty in commercial leasing (he has represented over 300 tenants and landlords in commercial lease negotiations).   ●Representative Manhattan transactions include the following: (a) represented over 250 commercial tenants representing office space in Manhattan, New York City.●Represented a Landlord who leased retail space to a Gap store in Midtown East, (b) Represented a Landlord who leased space to a coffee chain in the East 20’s, (c) Represented a private equity fund that leased office space in 7 Time Square Tower, (d) Represented a hedge fund that leased office space at 590 Madison Avenue, (e) Represented an Internet social marketing company that leased space on 23rd Street, (f) Represented a Landlord in Soho who leased space to a restaurant and food store, (g) Represented  an art gallery that moved to the West 26th Street art district (h) Represented a hair transplant doctor who leased space for an upscale hair transplant facility on Madison Avenue and (i) Represented a chain of pizza stores who leased space throughout NYC and Long Island,● Jim Shenwick, Esq. has written on the assignment/subletting of commercial leases, questions tenants need to ask Landlords before signing a commercial lease, “silent” commercial lease issues not dealt with in standard lease forms and hidden costs in commercial leases.  ● Jim Shenwick, Esq. also spoke at the Association of the Bar of the City of New Yorkon commercial leasing issues for tenants. At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   [email protected]  917 363 3391  Please click the link to schedule a telephone call with Jim Shenwickhttps://calendly.com/james-shenwick/15min                                                               

  1.                  Tenant should be permitted signage (at no cost)  in building lobby directory, elevator, floor and door (window signage flag should be permitted for retail)  2.                  Tenant should have the right to make deliveries to the premises at any time of the day for retail use 3.                  Sidewalk maintenance & repair should not the responsibility of the retail tenant, other than snow removal  4.                  Prior approval of private carter for retail Tenant.  5.                  Tenant not have to pay Landlord’s  expenses for initial renovation plan review  6.                  Tenant's renovation plans should be approved by Landlord prior to Tenant signing the Lease                     and the standard of review by Landlord should be "NUW"-not unreasonably withheld.  7.                  Water for sink and toilet should be provided at no cost to Tenant and bills for other water uses                    should be by direct meter.  8.                  Heating should be provided to Tenant even if there is in default under the lease.   9.                  Vault taxes, if any should be the responsibility of Landlord not Tenant. 10.              Obtain a  copy of the c/o for the premises and review prior to signing the Lease. 11.              Insurance rider should be sent to insurance agent for review and comment before the Lease is signed.  12.              Construction clause, if any must be sent to the Tenant's architect for review. 13.              Brokerage clause must represent who is paying the broker and the accompanying indemnification clause  must be mutual 14.              Real Estate tax increases, should be paid over 12 months by Tenant At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores. Provided below is Part I of our Leasing Checklist.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   [email protected]  917 363 3391  Please click the link to schedule a telephone call with Jim Shenwickhttps://calendly.com/james-shenwick/15min

 At Shenwick & Associates, we have represented more than 300 tenants in commercial leasing transactions, including office tenants, restaurants & retain stores. Provided below is Part I of our Leasing Checklist.  Any clients having questions about commercial leases should contact Jim Shenwick, Esq.   [email protected]  917 363 3391  Please click the link to schedule a telephone call with Jim Shenwickhttps://calendly.com/james-shenwick/15minLease Checklist:  1.                  Free rent?   How much? Tenant should receive 12 months rent at first year rate before rent increases in second year.  2.                  Are the premises in a land-marked building? (alterations are more difficult)  3.                  Request a  copy of the most recent tax bill and Tenant should only pay its pro rata share of taxes 4.                  Is the electricity direct meter, sub-meter or rent inclusion? 5.                  Assignment and sub-let provisions should automatically be allowed: (a) Tenant’s sale of its business, (b) merger of its business, (c) Tenant goes public, (d) assignment of  its lease to a related entity or division  6.                  Non-structural alterations should be allowed as a matter of right to Tenant  7.                  Interest on security deposit should go to Tenant without request or notice once per year and security deposit should be returned to Tenant 30 days after lease ends  8.                  Landlord should expressly consent to Tenant's particular use and assist Tenant in getting a liquor license (for a bar or restaurant)  9.                  If the premises have a sprinkler installation, who pays for monitoring, and maintenance?  10.              What is the electricity capacity of the premises wiring? Landlord should make a representation in the lease to the electrical capacity and the capacity should be sufficient for Tenant's business (important for a manufacturing or service business).Check our Blog for Part II of our Leasing ChecklistJim Shenwick, Esq

 Business Insider has a very helpful article on Chapter 11 bankruptcy. The article can be found at https://www.businessinsider.com/personal-finance/what-is-chapter-11-bankruptcyMany people are not aware that individuals as well as businesses can file for chapter 11 bankruptcy and that chapter 11 bankruptcy can be used to reorganize businesses as well as to sell assets.Jim Shenwick, Esq.   917 363 3391  [email protected] help individuals & companies with too much debt!Please click the link to schedule a telephone call with Jim Shenwickhttps://calendly.com/james-shenwick/15min 

Chapter 13 bankruptcy is a form of bankruptcy that allows you to reorganize your debts. After successfully declaring Chapter 13 bankruptcy, a monthly payment plan will be established that allows you to repay your creditors over a specific period of time. As a debtor, you have the right to dismiss your Chapter 13 bankruptcy case at any time. Afterwards, you will no longer be obligated to make payments under your designated repayment plan. However, you may lose the benefit of being in a bankruptcy case. In other words, your creditors will be allowed to resume collecting on their debts, potentially repossessing your assets or foreclosing on your property. You will owe your creditors whatever was due before initiation of your bankruptcy case, minus the payments that were made while your case was active. If you need help with your bankruptcy case, get in touch with our experienced bankruptcy attorneys at Young, Marr, Mallis & Associates by dialing (609) 755-3115 today. Consequences of Dismissing Your Chapter 13 Bankruptcy While you have the right to voluntarily dismiss your Chapter 13 bankruptcy case, it is important to understand the consequences of doing so. Once the bankruptcy judge presiding over your case signs the order granting dismissal, you will no longer need to make the payments outlined in your repayment plan. Furthermore, neither the Chapter 13 trustee or the court will have any further jurisdiction over your tax refunds, income, or anything else mentioned in your plan. However, you will lose your “automatic stay” that prevents creditors and collection agencies from contacting you. Accordingly, your creditors may once again seek to repossess your property or foreclose on any collateral that serves to satisfy your debts. You will owe them the same amount that was due before declaring bankruptcy, minus any payments you made before your case’s dismissal. Furthermore, after dismissing your case, you may face accrual of interest on outstanding debts, damage to your credit score, and an extended waiting period before being eligible to file for bankruptcy again. It is important to understand how your creditors will react before voluntarily dismissing your Chapter 13 bankruptcy. You may consult with our Bensalem bankruptcy lawyers to determine the best course of action in your case. Why Would You Want to Dismiss Your Chapter 13 Bankruptcy? There are multiple reasons that you may want to dismiss your Chapter 13 bankruptcy. For instance, if you receive a pay raise while your case is still active, your new income may have to be paid directly to creditors. In this scenario, it may be advantageous to dismiss your case and resolve your debt through negotiation. Furthermore, you may want to dismiss your Chapter 13 bankruptcy because your scheduled payments have gotten to a level where you can no longer afford them. You may end up owing more money than you originally owed if you fall behind on other payments like your mortgage in order to satisfy your expensive repayment plan. How to Request a Voluntary Dismissal of Your Chapter 13 Bankruptcy The process for requesting a voluntary dismissal of your Chapter 13 bankruptcy case is relatively simple. You will need to submit a written notice to your Chapter 13 trustee informing them of your decision. Your notice should include your name, case number, and your signature. The letter must either be mailed or hand-delivered to the office of the trustee. Your notice of dismissal does not need to go into the specific reasoning behind your request. You have the right to dismiss at any point. You do not need to waste your time explaining your decision. After submitting notice to your Chapter 13 trustee, they will file a motion to dismiss that formally establishes your dismissal. The trustee will then stop deducting money from your paychecks and your case will be dismissed. Can You File Again After You Voluntarily Dismiss Your Chapter 13 Bankruptcy? If you voluntarily dismiss your Chapter 13 bankruptcy, you will likely be able to file again right away. When you attempt to file again within one year of having a previous Chapter 13 case open, you will be granted a 30-day automatic stay that prevents your creditors from contacting you. However, after that 30 days is up, you will have to file a motion with the court seeking to extend the stay. For your motion to succeed, you must prove that your circumstances have changed and that you are likely to complete the new case. If you attempt to file a new Chapter 13 bankruptcy case within a year of having two or more cases open, the process becomes even more difficult. Under this scenario, an automatic stay will not be immediately granted. Furthermore, in order to establish an automatic stay, you have to show by clear and convincing evidence that there is a significant change in circumstances that will allow you to complete the new case. Finally, if creditor obtains relief from an automatic stay in your case, you must wait at least six months before filing a new case if you wish to include the creditor who obtained relief. What Are Your Other Options After a Voluntary Dismissal of Your Chapter 13 Bankruptcy? Besides filing for bankruptcy again, there are some alternative options for debt resolution after voluntarily dismissing your Chapter 13 bankruptcy case. First, if your financial situation has substantially improved, you may be able to pay off your debts in full. However, if you are unable to pay off your debts in full, you may be able to reach an agreement with your creditor to pay less than the full amount owed. It is worth attempting to negotiate with creditors to see if your case can be resolved. Doing so may help avoid re-filing for bankruptcy. If You Need Help with Your Bankruptcy Case, Call Our Law Firm Today Seek guidance and support from our experienced Abington bankruptcy lawyers by calling Young, Marr, Mallis & Associates at (609) 755-3115 for a free evaluation of your case.

The thought of financial difficulties delaying your ability to retire can seem like a nightmare. By filing for bankruptcy, you can stick to your retirement timeline and establish financial security relatively quickly Often, retirement accounts are protected during bankruptcy, whether through state or federal exemptions. This means that debtors can typically file for Chapter 7 bankruptcy without risking the liquidation of their retirement assets. Chapter 13 has little effect on a debtor’s retirement unless they cannot follow a repayment plan. That said, with the proper plan in place, filing for bankruptcy should not impact one’s ability to retire. Taking this action can help you retire when you initially planned to by addressing your debt in a timely fashion before you reach retirement age. Reach out to our bankruptcy lawyers in Pennsylvania and New Jersey to schedule a free case evaluation by calling Young, Marr, Mallis & Associates today at (215) 701-6519 or (609) 755-3115. Will Filing for Bankruptcy Hurt My Ability to Retire? The fear of losing all of the money you’ve saved in your retirement account might dissuade you from filing for bankruptcy. In reality, filing for bankruptcy can help debtors protect their ability to retire at the age they planned by providing financial relief and a path to repay creditors. While pensions and retirement plans are typically protected during this process, debtors may only be able to exempt these funds up to a certain amount, depending on the type of bankruptcy they file for and which exemptions they choose. Chapter 7 Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy. Debtors who file for Chapter 7 agree to liquidate certain assets to satisfy their debts. Depending on the amount of debt they owe and their available assets, debtors might be concerned that they cannot protect assets they’re depending on to fund their future, like their retirement accounts. Fortunately, our Trevose, PA bankruptcy lawyers can explain the various exemptions available to you as a debtor, which may allow you to protect your retirement account from liquidation during Chapter 7. Notably, a federal exemption for retirement plans allows most debtors to exempt retirement accounts in their entirety. Individual states typically provide exemptions for retirement plans under Chapter 7 bankruptcy as well. For example, Pennsylvania offers an exemption of up to $15,000 per year you are in bankruptcy, provided you meet the necessary criteria. New Jersey goes even further and has no exemption limitations for retirement accounts, meaning you can exempt the entire amount you have saved preceding bankruptcy. Debtors in both Pennsylvania and New Jersey can elect either state or federal Chapter 7 exemptions. This means that you can make the best decision and claim exemptions that will secure your retirement as you need based on your case, not on state exemption limitations alone. Chapter 13 There are no exemptions for retirement plans for Chapter 13 bankruptcy because this type of bankruptcy does not require the liquidation of assets. This means that your retirement should be virtually unaffected when you file for Chapter 13. However, it is important to note that Chapter 13 requires debtors to follow a repayment plan. Depending on your income, you might have difficulty meeting scheduled payments and consider putting funds from your retirement account toward payments. Making withdrawals from your retirement account before you reach a certain age might make withdrawals subjected to a 10%. This might mean debtors have to withdraw more money than their repayment plan requires to make payments. To avoid this, our Philadelphia bankruptcy lawyers can restructure your repayment plan if necessary so that you do not have to rely on funds from your retirement account to pay back creditors. It is typically unwise to use funds dedicated to your retirement to satisfy the requirements of your Chapter 13 if preventable. Although Chapter 13 bankruptcy does not require liquidation of assets, debtors shouldn’t assume that their retirement accounts are safe. Instead, debtors should take the necessary steps to ensure they do not have to resort to depleting their retirement accounts to pay back creditors. Will I Have to Retire Later in Life if I File for Bankruptcy? When you reach retirement age, your debts don’t disappear. You will still need to address them and, if you do so during your retirement, may have little disposable income to do so. While filing for bankruptcy can help you retire according to your existing timeline, delaying dealing with your debt might disrupt your retirement altogether. If you are nearing retirement age and are struggling with debt, filing for bankruptcy can help alleviate your financial difficulties. By filing for bankruptcy, you can repay creditors through liquidation or a repayment plan. In doing so, you can protect properly your retirement accounts and other assets from creditors who want payment. Filing for bankruptcy at the right time should not delay a debtor’s ability to retire. Depending on the type of bankruptcy you file for, the entire process might be over in months or years. If you are nearing retirement age and choose to file for Chapter 13, our attorneys can structure a repayment plan that enables you to pay off debts in as little as three years. This can help you ensure that you are free from debt by the time you are ready to retire. If you are already retired and are facing bankruptcy, you can still address your debt without impacting your retirement account by claiming the proper exemptions. The longer you leave debts unpaid, the worse your financial situation might get, and dealing with financial issues well into your retirement might cause you unnecessary troubles. Ask Our Attorneys About How Bankruptcy Impacts Retirement Call Young, Marr, Mallis & Associates to schedule a free case review with our Bucks County, PA bankruptcy lawyers at (215) 701-6519 or (609) 755-3115.