I Can't Swim and I'm Drowning in Debt

I know that a lot of people face financial problems.  It's the way of the world.  We live outside of our budget trying to survive. My problem is that my budget has changed and been altered due to no fault of my own.  Last December I was demoted at one of my jobs because I was unwilling to travel 3-4 hours away from home to work with no notice.  Sorry but I have 2 school age daughters so I can't just up and leave.  I also have a second job through which I have my health insurance.  I have to maintain a certain number of hours per week to receive those benefits.  So the demotion cost me about $300 per month.  I filed my taxes as soon as I had all the necessary paperwork, hoping to play catch up.  Unfortunately, the US Dept. of Education caught up with my tax refund first and took all of it because my wife was not paying on her student loans.  Oh the joy of filing married and jointly.  We are currently trying to get the money back since her loans are supposed to be written off.  As of yesterday however, we are 4 months behind on the mortgage so we are at the point of foreclosure.  My account is already overdrafted because I'm trying to keep the lights and water on.  I need supplies to take care of my diabetes but I can't afford to order them.  I also need a doctor to write new prescriptions for the supplies but I can't afford an office visit.  As the title of this post states, I'm drowning in debt.  And the way things are looking, I may be going under with no hope of survival.