So many of you are killing yourselves, working more than one job, to try to make ends meet to pay for food, gas and deal with the inflation that is impacting all of us.
However, the worst place to try to get money is to borrow from your pension, 401k or other retirement plan.
At Taieb Law, since we have been a New Jersey Bankruptcy Lawyer for over 37 years, we have seen how pension loans can totally destroy you in several ways.
First, several of our clients do not realize that borrowing from your pension may constitute income under certain circumstances and this has to be declared on your tax returns. So, you may end up having a large tax liability with Uncle Sam, depending on certain circumstances.
Second, your lives are crushed since you are having huge payments coming out of your pay checks for long periods of time and it just puts you under more financial stress. I am not saying that using credit cards or obtaining a personal loan is good; however, clients do not suffer anywhere as much financially as they do when a huge chunk of their paycheck goes towards paying back a pension loan.
Third, you are borrowing from your own retirement. This is your money for when you retire; not to solve your current debt crisis.
Fourth, if you need to eventually file a bankruptcy due to the overwhelming debt, any money obtained from pension loans or 401K loans within the past 6 months counts in the means test analysis and can definitely impact if you qualify for a chapter 7 or how much you have to pay back unsecured creditors in a chapter 13 plan.
Therefore, please understand all the consequences that are at stake when you borrow from your pension or 401K.
If you are behind on your debts and are barely making it due to the price of gasoline, food and other outrageous expenses due to inflation, it is urgent that you contact Taieb Law for a FREE consultation so he can advise you of your rights under the bankruptcy code. Instead of borrowing from your retirement plan, you can file a New Jersey bankruptcy to help get a fresh start, clean the slate and save your property.
Please talk to us at Taieb Law since we have been a New Jersey Bankruptcy Attorney for 37 years and can analyze the situation to protect your rights and save you from getting yourself even deeper in debt by making the wrong borrowing decisions.
If you can’t sleep and are overwhelmed, call us and we will help you resolve your individual problem like we have helped over 7,000 people over the last 37 years.
If you are sick, stressed out, or losing sleep over your debt, we can help you save your property and get a fresh start by filing a New Jersey bankruptcy for you. For more information go to www.bankruptcywithcare.com or call us at 856-600-0819 for your FREE initial consultation.
AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP YOU EITHER IN OFFICE OR VIRTUALLY. PLEASE ALSO NOTE THAT STEVEN N. TAIEB, ESQUIRE HAS BEEN VACINATED. ALSO, CREDITORS MEETINGS ARE BEING CONDUCTED VIA TELEPHONE OR ZOOM AT THE PRESENT TIME.
Steven N. Taieb, Esquire has been a New Jersey Bankruptcy Attorney for 37 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.