My question involves bankruptcy in the state of: Michigan

I have been unemployed for 6 months now, and I am having big problems with taking care of back bills. and I am considering chapter7 bankruptcy.

I have a small 401K from my last employer (less than $3000).

If I use the 401K money I know that I will be charged interest and penalties, but if I do not, during the bankruptcy, will I be required to liquidate it anyway, thus incurring the same interest and penalties?

I am goint to file individually, as the bill involved are all initiated previous to my marriage. I was going to use whatever was left after the liquiditation to try to catch up on current obligations before they accumulate into another major problem.

Thanks for you advice.