Pension Loan or Personal Bankruptcy to Address Credit Cards

Credit card debt can become overwhelming. Often in a desperate effort to avoid bankruptcy, individuals will borrow against or withdraw their pension or retirement savings to pay down at least some of the debt. In certain circumstances, that can help. But often, the pension loan is just a short term remedy and a bankruptcy has to be filed anyway. Except now, the individuals have reduced their retirement savings. Initially it should be noted that retirement savings are typically protected in a personal bankruptcy meaning that asset will not be lost or liquidated during the bankruptcy. If the unsecured debt is not significant and the pension loan can payoff the debt, and the loan payment is less than was being paid, the pension loan could work. However, if credit cards remain and now the individuals are paying credit card debt and a pension loan, then it may be that bankruptcy from the start may have been a better solution. Certainly before borrowing further, it would make sense to schedule a free consultation with an experienced attorney to consider the advantages and disadvantages of each option.

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Get Our Help Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Cherry Hill Office
1060 North Kings Highway,Suite 333
Cherry Hill, NJ 08034

Toll Free: 800-759-0767
Phone: 856-254-2196
Fax: 856-414-1230
Map & Directions

Philadelphia Office
Suite 1505
1515 Market Street
Philadelphia, PA 19102

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions

Mount Holly Office
1848 Burlington-Mount Holly Rd
Mount Holly, NJ 08060

Toll Free: 800-759-0767
Phone: 856-254-2196
Map & Directions

Philadelphia Office
7909 Bustleton Avenue
Philadelphia, PA 19152

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions