Legal Question in Bankruptcy in Alabama

NO. Do NOT liquidate your 401(k)! That is a horrible mistake that many people make before filing bankruptcy. Certain retirement savings plans are exempted from bankruptcy proceedings under federal law--that is to say, you can keep them after your bankruptcy--but if you liquidate those funds, YOU WILL LOSE THEM. If your finances are such that you're going to have to file bankruptcy anyway, do not make a futile attempt at temporarily patching them up by giving away your retirement. Before you touch that money, call a bankruptcy lawyer and decide if you need to file bankruptcy.