East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Can bankruptcy be a step towards solvency?

Financial and debt management advice may sometimes seem counterintuitive. For example, many workers would not question the advice that they should save for retirement. Yet a recent article did just that.

Specifically, the article described priorities that might trump saving for retirement, such as reducing consumer debt or building up liquid savings outside of retirement funds that can be used to cover short-term emergencies.

True, funds can sometimes be withdrawn from retirement accounts for certain emergency situations. However, those early withdrawals often come with high penalties. In addition, paperwork is needed to qualify for those special situations. That processing may take several weeks. In the interim, an individual facing an emergency financial situation might accrue huge credit card debts, medical bills, and/or penalties for delinquent mortgage payments that may be too high to ever pay off.

Our bankruptcy law firm’s website has several resources, including an article on how a bankruptcy filing might actually be a faster step to solvency than struggling with unmanageable debts. The article cautions that an individual should not wait to file for bankruptcy until his or her resources are completely depleted. 

The article is an important reminder that an attorney can help not only with the decision of whether to file for bankruptcy, but also the timing. Individuals with skyrocketing debts but some equity might benefit from a Chapter 13 filing. This type of bankruptcy allows the debtor to maintain his or her equity, while providing a more reasonable repayment plan. At the same time, even a Chapter 7 filing provides that certain property is exempt from liquidation. If you have questions about whether a bankruptcy filing might suit your financial situation, our website might offer some answers.

Source: Money, “When Not to Save for Retirement,” Mark Miller, Jan. 28, 2016

Related Article: “Bankruptcy As a Step to Solvency,” copyright 2016, Goldman & Beslow, LLC

No Comments

Leave a comment
Comment Information


Tell Us About Your Case

Bold labels are required.

Contact Information

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.



  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top