Looking for solutions

[Maxed33]

Any advise from folks who have been or are in my shoes will be greatly appreciated.
Here is our stats,
INCOME= 7,495 per month before taxes
TAXES = 1700.00 per month
EXPENSES = 1100.00 per month
Auto loan = 465.00 per month
Child care = 400.00 per month
Mortgage = 1400.00 per month
Credit card liabilities total 40,000 @ a cost of 1250.00 per month
Some how between the toilet paper, soap, and other expenses that pop up that are not listed above, we usually have too much month at the end of the money.
On the bright side.
401k =14,000.00 Should we liquidate and take the hit? Approx 4200 taxes, and another 1200 in penaties.
Our home is worth approx 10,000 more than we owe.. Should we sell it?
1200.00 dollars in stock investments.
I am willing t sell all to avoid bankruptcy, should I be? After all there is another 2 people involved.
It's a trade off between do the right thing and repaying what I owe, or go for the quick sannity saving chapter???
Thank you for reading this post
Maxed!!

[Dam]

On the bright side.
401k =14,000.00 Should we liquidate and take the hit? Approx 4200 taxes, and another 1200 in penaties.

No. Keep it. You didn't mention your age, and it might take a long time to rebuild it but it's untouchable, so don't liquidate now.

Our home is worth approx 10,000 more than we owe.. Should we sell it?

If your home is worth more than you owe, have you looked into a refi? You may have to pay a high interest rate, but you'll pay everything off and still keep most of your assets. Sell your home and the $10K left over will go to real estate broker's commision and other closing and legal costs.

Make sense?

[Maxed33]

I should have been more clear. Our home is worth 10,000 more than whats left on the mortgage.
I am actually closing on a interest only refi this thursday.
This will free up about 400 per month.
I am awaiting a return call from my financial advisor. I want to ask him if there is a way to get that 401 money without penalty for special circumstances.
My daughter will be starting catholic pre-school a little over a year from now.
I must get my backyard in order prior to this.
I'm only 33 years old, the 14 grand can be replaced. As it stands now I'm not even contributing.
There is also a side of me that says screw them. File bankruptcy, keep what you have workrd hard for and really start saving and investing my money wisely.
Thanks
Maxed