We are refi'ing our home for the FHA max to refi debts but we will still have a sizable chunk of debts to knock out... My 457(k) deferred comp account has around $15,000 or more in it. I would like to use this to pay off these debts that have become a burden to us. Does anyone have any experience with this type of thing?? I understand my work allows me to access the account now, without quitting, but probably not without penalty but that is worth the stress relief it will bring!

Thank you!

with penalty and taxes you will probably only get 9-10K from the account. cashing out retirement accounts is not a good idea IMHO.

Have you considered the downside of putting unsecured debt onto your home??

Yes. Unfortunately, we have no other way to pay off the debt. We have around $75k in unsecured debt. Our payments on all debt literally outpaces our income.
I figure the 457 account only took me 5 years to get to $15k so the "loss" is worth the stress relief. I have another retirement account that I won't touch. I'll work an extra few years if it means stress relief now... But, how can I cash it out, even with penalties? I probably only need a portion of it anyway. I think all the interest we are paying (default amounts) and late fees, overlimit fees, etc.. Is worth the penalty. I honestly know of no other way. Needless to say, this REQUIRES a major change to our lifestyle, but I am OK with that. We are so stressed over the debts that it was a tremendous lesson!

Here is an example of the stress I have that underscores the need to use this money, if at all possible. This is embarrassing, but it is reality...
I started this month with a negative balance in our checking account with 1 week left until payday. My brother-in-law was kind enough to loan us $350. Even with that, I had to visit a payday loan place to borrow another $700 (I hate to admit). We now have $20 in our checking until Wednesday... My electric bill is past due, my unsecured credit is past due, I have a half dozen medical bills to pay, and there is more. All this with a week until payday. When payday arrives, that will pay the two loans plus my daughter's tuition at school which leaves me with... yes, practically nothing. Remember, all those bills building and waiting? Well, so far, nothing applied to them. I also have $204 in overdraft fees this month already!!
There is a silver lining! Our FHA loan is to close Tuesday and hopefully fund by Friday to pay much of the unsecured debt and maybe leave us $1000 back... All these lates and whatnot will probably suck up that $1000 too. This is over simplistic, but basically, the point is, we are behind to the point we just need to get it all paid off or it will go nowhere...
Think I should contact the creditors myself, or use a counseling service? We may be OK after the FHA, but it has been so long since we have been ahead, that I am gunshy... I just want it gone!

BK13 is better than cashing out protected funds. just my opinion.