I'm thinking of switching jobs and have about 30,000 in debt. I have about 34,000 in a 401k that I was going to cash out on... not sure if the interest rates would be too high to justify this. Also, what about filing for bankruptcy... do they take your 401k money if a person files for bankruptcy?

If you withdraw money from 401(k) and do not roll over to new employer's 401(k) within 60 days, you will pay early distribution penalty of 10% and entire distribution will be your taxable income. Read: Your U.S. Tax Return: Elective Deferrals 401(k) Plans (http://taxipay.blogspot.com/2008/08/elective-deferrals-401k-plans.html)