What is your advice if I am way over my head in debt?

I'm not going to call National Debt Relief a scam but I will say that I've had clients in debt relief programs that have paid a lot of money and their debts are higher than when they started. DEFINITELY, DO NOT TAKE OUT YOUR 401(k) MONEY UNTIL YOU'VE TALKED TO A BANKRUPTCY ATTORNEY. Bankruptcy can eliminate your debt or put you on a court ordered payment plan without sacrificing your retirement funds.

Obviously a bankruptcy is definitely worth considering. I would suggest that you limit the size of the withdrawal from your 401(k) to enough to (a) meet your immediate needs for just a few months until you can reasonably expect to find a new job; and (b) pay the costs and fees of a bankruptcy. The filing fee for a Chapter 7 is $335; for a Ch. 13, $310. Lawyers will ask for an advance payment ('retainer') in an amount they will estimate based on how much work the filing apparently will require. In my office, we usually ask for a retainer of $2,000 for a Ch. 7; and $2,500 to $3,000 for a Chapter 13. It's not really cheap, but it can be a lifesaver for people who really need it.

Go meet with a BK lawyer face to face. Without more information, filing CH7 seems to be your only option. Do NOT take out the 401(k) money until you meet with a lawyer. There is life after bankruptcy. Good luck!

I wish you had provided me with some useful information such as how much your debt adds up to, when you last used credit, and how much you have available after covering necessary living expenses, to allocate towards paying your debts. As a general rule, cashing out your protected 401K to pay debts is usually a very bad idea, because you will pay a sizable tax penalty to do this.

DO NOT cash out your 401k until you speak with a qualified bankruptcy attorney in your area!

Stop paying National Debt mgmt.. Do not cash in your 401K. File Bankruptcy.

I would strongly consider BK before raiding your retirement. Those funds are exempt in BK.