Taking out 401K to pay for debts?

What is the name of your state? OR

I have an outstanding $7,200 CC debt (5 mos past due). Other than that, I'm still current with all my other debts. I don't want to file bankruptcy just for one outstanding debt. I have negotiated paying off 50% of the balance ($3650) to clear the debt. Does it make sense for me to take out money from my 401k and get penalized for an early withdrawl to save me from getting a judgement or filling for bankruptcy. I don't even think they would let me do that since it may not be classified as a hardship situation. But if they did, would this be a reasonable cause or not?

[racer72]

Can you borrow from your 401K? I have a couple times in the past and part of the interest I paid went into my account. Plus the interest rates are fairly low. You would probably want to talk to a tax professional to make a determination if a withdrawal will work for you.

Yeah... that's a much better option than a withdraw. I will borrow against it instead. What was I thinking? Thanks!