There are several things that you should not do if you are considering filing for bankruptcy under either Chapter 7 or Chapter 13.  One of the things that people do which is a prohibited act is repaying a family member or a friend within a year of filing for bankruptcy.  This is known as a preferential payment and the court can undo that type of payment or repayment.  Your family member may be required under court order to turn over those funds to a Trustee who will then administer the asset for the benefit of creditors.  Leave Your 401(k) Alone The other thing people do is they borrow from their 401(k) in an effort to repay their creditors only to find that they did not have enough money + Click Here For Read More