<prompt> Human: Alright, long time lurker and I should have asked before. Im in a bad spot. I was unemployed most of 2013 and got behind on credit card payments, almost lost my car if not for the help of family, not to mention I graduated college in 2013 and Sallie Mae is wanting to get paid. I finally got hired on doing annuity processing for 14hr 400week. Note: I should add that this is way less than the income I was used to in the Navy and loans just helped me carry the debt while I was in school. Ive caught up on my car and have started paying debts less that 400. Like the bank account that was overdrawn and charged off. My expenses are low, Im living with my girlfriend and her parents so I only pay 125 in rent.At this point, the 2 credit card companies are about to take me to court and garnish my wages. I really dont want that to happen. One offered to settle for about half of balance on the card. I have that much approx 3500 in a 401k from a job I had a few years ago. Plus about 1400 in an HSA that I had at the same job.My question is: is it worth it to cash out the 401k and HSA to pay this debt down? Am I being rash? Is there a better answer?Thank you for helping the financially illiterate. Any books you want to recommend to me, good ahead. I need any help ya got PF.edit: spelling  <response>: This is a horrible place to ask for advice when one of your options is bankruptcy. 1. The 401k and HSA are protected. Credit card companies cant touch them unless you are fool enough to liquidate. 2. Liquidating 401 results in 10 penalty. Settlement will result in taxable event.3. They can only garnish wages if there are enough wages to be garnished especially when you consider the non-dischargeable debt. In other words, they cant garnish your wages if you show up to court.4. Chapter 7 is a viable option. We havent heard how much debt we are talking here, but if it approaches 10K, why wouldnt you? For a 1.5k fresh start and sleep soundly at night? I would.5. Im not a financial advisor, but how did you manage to rack up college debt if you were in the military? Look into having GI funds used to clear out your college debt.I would talk to a bankruptcy attorney. I would see if GI bill can be used to pay of college loans. I would open all mail. I would ask if the debt has been sold or if it is still held by credit card company. I would be aware that a partial payment can start the clock again and make these items appear on your credit report for longer. 