Debt Settlement or Bankruptcy?

Divorced August 1, 2008 in Washington State.

Awarded three debts ($34K total) in the divorce: two Lines of Credit and one credit card. I was never a joint owner on any of these debts which has been confirmed by the creditors. On the advice of my divorce attorney, I reluctantly took the debts because I received the majority of the assets (i.e. household furniture), my ex used the debts to pay the mortgage on the house (which we sold at a loss) and my ex has been unemployed for almost two years. My yearly income is approx. $40K; my ex was employed at $135K before being fired.

The financial institutions are willing to settle the debts for a reduced amount, say my portion is "paid as agreed," and charge off the remaining amounts. They say the charge off would show up on my ex-husband's credit report and be reported to the IRS against him not me.

To settle the debts I would need to borrow from family members as well as take out what remains in my IRA and/or 401K (not much). Plus, I have debts I incurred while separated (approx $21K) and my monthly budget is in the red each month.

My questions:
(1) Is it in my best interest to settle these debts (if I can come up with the money)? or file bankruptcy?

(2) Would my ex be able to get a judgment against me for not paying the full amounts despite the creditors agreeing to accept my settlement as "paid as agreed?"

(3) If the debts are discharged in a bankruptcy, can my ex still get a judgment against me?

(4) Can the debts show up on my credit report based on the divorce decree my ex provided the creditors? Currently, they are not on my credit report.