because, according to the entitled to web pages, you can earn up to £66k per year and still be entitled to CTC and WTC
I can't really understand how you have to pay your own legal fees if the children live with you? When I went through a similar thing, both myself and my then partner worked full time and earned a very good wage but because the children lived with us we were entitled to legal aid because it was for the children not us - maybe it doesn't work like that now then?
Wish you well, but you sadly, if you owe all this amount and you are mortgaged to the hilt with no equity, then I don't think there is anywhere you can go for more loans etc? Can you not consolidate at all?
I would have thought you can do away with a solicitor at any time during a case? Will he or she not work through a payment plan at all?