Tax implications o self directed IRA to pay off existing debt

[Karen Bidwell Hinz]

I have a self-directed IRA with about $120,000 in it. Unfortunately I also have about 110-130 thousand dollars worth of unsecured debt via credit cards. Just wondering what the tax implications would be if I use the whole 120,000 to pay off all debt. Or does it make more sense to try to declare bankruptcy or some debt consolidation firm. My guess is the latter of the two pretty much make it impossible for me to get any kind of loans for the next few years at very least do any kind of real estate deals.