<prompt> Human: Heres our situation wife and I. Hoping for some guidance here. Going to be calling a couple services today but I value your thoughts. We early 40s and early 30s in age. Both professional with a combined gross income of around 220kyear. 2 young kids...1 of them in preschool. We have around 80-90k in debts not counting mortgage. Mostly credit card or previous debt consolidation loans. Im also not counting around 8000 in student loans, which I understand not much can be done with? We both have 401k but both have loans out against ours 20-25k each in 401k loan. This is separate from the 80-90k in debt I mentioned. Large mortgage with probably not a ton of equity 3500month payment, maybe 50-75k equity. Somewhat recently purchased homes. A couple cars. 1 paid off, worth around 15-20k and 1 were paying for with about 5k remaining on that loan. Life without both cars would be exceptionally challenging due to work commutes, school and distance from home. Pretty much no savings or other reserve except 401k. Most accounts are in my name. One card and one loan is in her name about 30k of the total. Card balances are getting high and my credit score and limits are starting to get impacted, though thus far we have no late payments anywhere.Rolling up all our obligations and groceries, gas, school, etc. were at the moment needing to put out 2000 - 2500 or more per month than our net income allows. This is a result of some poor planning and some large unexpected expenses this last year. Weve kept up thus far on monthly payments at least, but in the next month or two that wont be the case any longer. Trying to figure out the best course of action. Im thinking these are the 3 main options: Talk to some debt settlement service. Not sure how much debt I can expect to get negotiated down and what the credit impact would be? Bankrupty. Pull a pile of money out of 401k and take that hit to pay off most stuff. We have enough to cover things I think, but it would drain about 50 or more of our 401k.Let me know what you think or if I can add any useful detail. Thanks.  <response>: post a budget.. It seems ridiculous that people grossing 220k per year would need to file bankrupty over a value less than half their income. 