I have just lost my job, my wife makes 40,000 a year; we live in 140,000 home and debt around 40,000. I have retirement cash value of 147,000. What are the ramifications of cashing in and paying off the debt and some of the house?

Early withdrawal from an IRA, 401k, or other similar retirement account is going to be subject to a 10% penalty in addition to normal income tax rates. It's generally a poor idea unless you need the money immediately to pay bills.

Not to mention how much money you will lose from 1st, taking the money out (penlites and taxes will kill you), 2nd spending it, and 3rd, the about of money you will be losing from not being invested will be a MAJOR loss. Even more so, if you are older, you won't have as much time to start over. A very poor move IMHO. Hopefully everything works out for you. When you get back on your feet, be sure to save 6-8 months of your salary in an emergency fund for just such a reason. A high-interest savings is where I like to keep mine. Good Luck