Now you have given some more particulars, it does seem to me that Bankruptcy is the answer for you - can I refer you to another site which is www.debthelpuk.co.uk/ Have a look round that site, particularly at the forum which is for people just like you.(posted 7969 days ago)OK, when you are in the shite for nearly £40k, bankruptcy may not be such a big deal when you realise that most if not all that will be wiped after 3 years and you can then start again. If you have a job, or on Welfare, you still have to eat and live, and the Official Receiver seems to allow a decent standard including allowing people to retain cars and/or re-buy the equity in their homes.
Again, this may be a threat they will not carry out - but really, I think it best if they did bring an end to this for you.