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The issue of protecting your retirement funds when you file bankruptcy is always a huge issue for folks (of course!)… New Orleans Bankruptcy Attorney Kevin Gipson has a brief blog on it:
http://www.bankruptcylawnetwork.com/2009/09/19/will-i-lose-my-retirement-if-i-file-for-bankruptcy/
I would also add that if you are considering filing bankruptcy, please discuss your situation with an experienced bankruptcy attorney prior to withdrawing, or taking out in any fashion, any of your retirement funds to pay bills. 
If you are in Kentucky and considering bankruptcy as an option, we would be happy to possibly meet with you (depending on what county you live in) and discuss your options.  You can reach us at johnrogers@glasgow-ky.com  or toll free 1-888-651-9353 or via our website at www.bankruptcy.ky