Hi Katie,
I feel your pain, and i think i can help. When those moms said Dave Ramsy...they were right. DONT FILE BANKRUPCY!!!!! Its not you last option. I am a Financial Advisor with Primerica Financial Services. If you would like I could sit down with you and your husband and help you out. We do what is called and FNA (financial needs analysis)report. Its a complimentrary credit review. I would love to help another mother out. let me know if youre interested.
Wow! Thank you so much for the out-pouring of advice. It is greatly appreciated. My husband and I have set aside some time to talk at length about our situation and I will share your responses and personal messages. I am not sure what we will do - but it is nice to hear all of the options and support. Will let you know which direction we head…well, we are heading towards financial security…will let you know HOW we are planning to get there. 
Thanks again! ~K.