There has been a surge in number of people filing for bankruptcy. For the year 2009 1.4 million people in America are likely to file bankruptcy. If you think carefully you could file for bankruptcy and yet retain your children’s college fund, your retirement savings, your car and your personal belongings. You will be surprised to know that a recent study done by the Federal Reserve Bank of Boston shows that people who have filed for bankruptcy can still get their credit card pretty soon.

If you are in a financial mess and planning to declare bankruptcy, you need to be aware of certain points which will help you save your assets. I suggest you talk to your lawyer and find out the Bankruptcy laws in your state.

Here are some important pointers that you need to remember when filing for bankruptcy.

If you have invested your money in pension plans, including investments in 401(k) is safe from creditors. If you have saved for your children or grandchildren under the 529 tax-sheltered college saving plan then you saving is safe from creditors for a period of 2 years from the date of deposit. You can contribute up to $65,000 per child under 529 plan without having to pay gift tax. The amount is increased to $130,000 if you contribute along with your spouse. Your contribution to Life insurance products is also protected but the rules may vary depending on the state that you live in,

You home could be saved from your unsecured creditors depending on the state that you reside in. However, if you have a mortgaged property the lender has a right over your property. To save your home from creditors you need to complete the required paperwork. Residents of Florida and Texas have the benefit of unlimited homestead exemption.

Consult a good lawyer before you decide to file for bankruptcy to save your assets.