I have been down that path. I am so sorry.
My mantra was "No company can kill me for owing them money" and "There is no such thing as debtor's prison".
It wasn't our fault that DH lost his job. It was absolutely unexpected.
Get thee to a financial counselor (a free one) asap.
Don't try to avoid the problems, they won't go away. You have to face them.
Could you sell the house you're living in more easily? Do you have a realtor, or are you trying to sell it yourself?
We're here if you need to vent.