I would say payoff the debt, and then with the extra 25k?
Up your 401k contributions(dependent on how good/shitty your employer's program is), put some of the 25k into your savings account(Congratulations, you now have a true -emergency- fund). Think about funding a ROTH IRA or 2(for you and your wife, -5500 contribution limit each, 11k to fully fund for 2013, you can wait up until April to do that).
Don't close out both those credit cards. Depending on the quality of the cards(rewards, etc), you may want to hold onto one or both of them. Also, I know you don't care as you're angry about getting out of debt, but length of accounts is one of the major factors for credit score, and it's never a bad thing to have a decent credit score. It gives you optionality and flexibility, which as you've witnessed being forced to foreclose due to job moving, is very important.
Also, have you considered the tax implications of receiving this inheritance? Are you going to be on the hook for any?(I have absolutely no experience with inheritances).