If you file bankruptcy in Florida, almost all retirement funds are protected from your creditors. This includes 401k, Keough plans, IRAs, Roth IRAs, etc. For the most part, retirement funds are unlimited in exemption. IRAs are limited to approximately $1 million per spouse.
In other words, if you file bankruptcy and you have $100,000 in credit cards and $500,000 in retirement funds, you can get rid of the credit card debt and still keep your retirement.
Further, if you withdrew your retirement funds early to pay your creditors, you will more than likely have to pay taxes and penalties. The taxes are usually nondischargeable in bankruptcy.
Like everything else about the law, there are general rules and exceptions. If you are thinking about filing bankruptcy, call an experienced bankruptcy lawyer in Fort Myers, at 239-206-1948.