Retirements accounts are usually safe from common creditors both inside and outside of bankruptcy. If the creditor can’t touch the retirement account, it would not be wise for you to do any of the following:
1. Take a loan out against the account
This is a common issue and it is typically a result of good intentions. Most people who are facing financial problems do not want to file for bankruptcy and will do almost anything to avoid it. This shouldn’t be one of those things except in very limited circumstances. Speak to an experienced bankruptcy attorney before signing the loan documents.
2. Don’t withdraw money to live from a retirement account
Doing so turns what was probably safe from creditors into an asset that may be reachable by creditors both inside and outside of bankruptcy. Again, this should be done only in limited circumstances and after consultation with an experienced attorney.
3. Don’t use the account as collateral for a loan
Doing so may negatively affect the protected status of the account. Again, only in limited circumstances.