If I declare bankruptcy, does it become a public record ? and should I first cash out my 401k and retirement fund ? will this prevent from getting a good job either in the private industry or government ?
State/Country relating to question: Illinois
What type of retirement fund do you have?
I dont really know what type of retirement fund is.
Is the 401K your only retirement fund? If not, is the other retirement fund a tax-deferred, IRS-qualified fund?
no, I have a 401K, and the company also had a retirement fund. The retirement fund is a tax-deferrred.
1) Bankruptcies do become part of the public record, in the same manner that other court proceedings become part of the public record. This means any interested party can get a copy of your Bankruptcy papers. (This is why Bankruptcy documents now only contain the last 4 numbers of social security numbers and account numbers.)
2) The money in 401K's and tax-deferred retirement accounts is exempt from the Bankruptcy court. As long as the money remains in these accounts, the Bankruptcy court cannot touch that money. If you take the money out, the Bankruptcy court can take that money.
3) It is against the law for an employer to discriminate against an employee because they have filed a Bankruptcy, so filing one should not prevent you from getting a good job. Bankruptcy Stat. 525.
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