Thanks for the great responses! I agree that my laywer is probably biased towards a chapter 7. That is why I am seeking other input.There are some very good ideas, most of which I've thought of before.My wife can't work because of medical conditions. She can't hold a job. I support a family of three on one paycheck.Most responses seem to think that $250K in retirement is a lot, which suprises me. I feel it is underfunded and should be well over $300K. When I run the numbers through a retirement calcuator, I'm will be able to squeek by retireing at 63. Taking a chunk of out of this will seriously harm my ability to retire some day, if at all. I am of the generation that will most likely not get any SS, or medicare, or pensions, or any other benefit. My 401K is all I've got so I take this deadly serious. I wouldn't touch that money even if I was looking at living on the street. That money is the only future I have. If I get disabled, that is the only thing that will save me.My contributions to my 401K are only 6% of my pre-tax income, so it is not that much money out of my pocket.I can't borrow against my 401K primaraly because there is a high risk that I may have to switch jobs within the next 5 years. That would trigger a call on the loan, which would then default, trigger a distribution with taxes and penalties, which would destroy my ability to retire.One responded noted that he feels that between the lines I don't intend to pay the CC debt. He is correct. I don't intend to because I can't see how to. I've painted myself into a corner and no matter what, I'm going to loose big time. I have to take actions that will protect my long term interest, even at the expense of short term interests.Keep in mind that I haven't made the decision to file yet. I still think the best solution is a comprimise between all ideas. I hope that perhaps I can get a small 401K loan (which is all I can afford), settle with the CC's at a discount with that money, and try to get on with my life (sort of a private chapter 13). It depends on how the CC's want to work with me. So far, they don't. They have hinted at settleing for less than the full amount, but then refuse to follow up with serious negotiations. I guess they wan't to see how far they can push me first. I don't blame them. I wouldn't settle until I exercised all of my options first.
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