You have been advised in many good ways no doubt. I used to do credit "salvation" for a company that I no longer like to do business with. Their idea was to use up all the equity to pay off everything else, of course with a loan from them. I dont care for that, since you are taking unsecured credit and paying it off with a loan on the house you live in. When you now find you can not pay that loan, you could lose the house.
Your main problem is the back taxes, work on that first. Talk to the tax people and work out something, but whatever you work out YOU MUST DO! If you fall behind they will be on you like wolves. Make sure what you tell them you can do, you really can do every month, no doubt.
Credit card debt can be paid off, make a plan to pay so much per month, or as I learned even every other week. Since this is revolving debt, when you pay in the middle of the month, or anytime, the interest on that money stops when paid, therefore you pay less interest overall. If the debt is large, over 10G, then you could save a lot doing this. To do this, if you pay more per month than the bill, pay the extra in the middle and the minimum due at the time the bill comes, that also lessens the interest.
Chapter 11 bankruptcy can be avoided and it is not the black mark it used to be. I know folks that have done 11 then went to 7 because they could not keep up with even the schedule the courts set on 11. They had credit in 6 months afterwards, at a higher than normal rate. I get the feeling though that you have learned the CC lesson and done away with them.
One other thing, and this is from Dave Ramsey, eat beans and rice and work nites delivering pizzas...........in other words, do the neccesities, and work part time, no frills, no fancy stuff, just the basics, then when you immerge victorious, splurge but pay cash for it. I know I have been there, it aint no fun!
God Bless
