My question involves bankruptcy in the state of: indiana

i don;t want to but we may be forced into filing bankruptcy. However, I have some questions... My husband is retired (72) and on social security. I am 64 and on social security disability which just started last year. We have a tax liability of over $10,000 that we are making payments on and have for several years. We tried a debt consolidation loan company not realizing that we would be charged taxes on all the write offs of credit cards. We thought we were doing good by using savings to pay them off. but it bit us in the butts. we still have an open credit card account for $12,000 that would not negotiate and we ran out of money. They are still trying to collect from my husband's social security income. But we still haven;t paid. We are also paying off hospital/doctor bills as we are able even though they are all in collections. in April my husband had a heart attack and 5 bypasses. We are anticipating a large hospital bill not covered by insurance on that. He was in the hospital for over 30 days.

We are thinking that once we receive all his bills we may have to file bankruptcy as we can never get out of all this debt. We still carry about $10,000 in active credit card bills that never were negotiated and that we live on to pay for medical prescriptions. Yes, we both have insurance but it does not cover all and our out-of-pocket costs are high for my medical issues. My husband and I both lost our jobs (he around 2007 and me around 2001 and 2011) We made good money and saved but it didn't seem to be enough and we used most of it on debt reconciliation and then living expense.

We own 2 older vehicles (2001 Chevy Blazer and 1998 Chevy truck). We also own our own home but have a $40,000 second mortgage on it that we are paying off. We also own a lake cottage which we are selling on land contract but we have yet to see the first payment on it ($3,000 this year and 2 $5,000 payment every year thereafter until paid for a total of $65,000). how would that cottage that we are selling on land contract figure into the bankruptcy? could they make us call the loan in and use it to settle debts before we could do the bankruptcy/

Thanks.