In choosing to have your child baptized in the Catholic church, you are consecrating that child to God and agreeing to raise him or her in the Catholic faith. The choice of Godparents is an important one, they must be practicing Catholics, firm in their faith, as they are agreeing to insure your child is educated in the faith in the event that you and your spouse are unable to do so.
As you attend Mass regularly (also a condition of having a child baptized), you may meet and get to know other young parents who are strong in their faith. Also your priest may have some suggestions for choosing Godparents. While it would be nice to include family members,if they are not practicing they are definately not a prospective Godparents.
I will pray for you as you discern and discuss, and pray that family members return to th "One Holy Catholic and Apostolic church. God Bless You.