Bankruptcy for Seniors: Safeguarding Social Security and Pensions in NJ - Daniel Straffi

From Straffi & Straffi Attorneys at Law – Bankruptcy for Seniors: Safeguarding Social Security and Pensions in NJ examines how older adults in New Jersey can use bankruptcy as a tool to protect their core retirement income. In this episode, we unpack the legal protections around Social Security, pensions, retirement accounts, and the nuances of choosing exemptions when filing under Chapter 7 or Chapter 13.

We begin by framing the financial vulnerabilities of retirees — rising medical bills, credit card debt, mortgages, or supporting family members — and show how these challenges can escalate when living on a fixed income. Next, we explore the mechanics of bankruptcy options (Chapter 7 vs. Chapter 13) and how automatic stay, means tests, and exempt assets factor into a senior’s decision.

Then the discussion turns to how federal and New Jersey law shield Social Security, pensions, and retirement accounts from creditor claims. We also explain why it’s critical to separate exempt funds in distinct bank accounts to preserve their protected status, and outline which types of pension plans in New Jersey enjoy full protection. The episode also addresses protecting your home, car, medical debt, and other assets under the right exemptions.

In our closing segment, we dispel common myths about senior bankruptcy — for example, that you’ll lose everything or that only irresponsible people file — and emphasize how bankruptcy can offer a fresh start without sacrificing dignity or core income. We wrap up with tips for selecting exemptions, managing post‑bankruptcy credit, and when to consult a seasoned New Jersey bankruptcy attorney like Daniel Straffi, Jr. to guide your path forward.

Straffi & Straffi Attorneys at Law

670 Commons Way, Toms River, NJ 08755, United States

(732) 341-3800

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