Google Disavow Link Tool Advice Needed Please.

Google Disavow Link Tool Advice Needed Please...

Here is the situation: Your website has 10, 000 links - 10% are terrible. You haven`t received a Google Unnatural Link Warnings, but recently the website`s search engine ranks have nose-dived for some of its major keywords (top 5 to 50th for very competitive terms). This is most probably due to Google Penguin or perhaps a different update...

After finding all of the links, would you drop them straight into the Disavow tool or would you contact every website to ask for them to be removed? I`d be really interested to hear from somebody who has been through a similar scenario. If you`ve bounced back - how did you do it? 

Thanks in advance. Rob