Hi there
Your debts are not that high, and I suspect that in common with a lot of young couples you have suffered as a result of a loss of income through maternity leave which has left you trying to play catch up. Unless you plan to have more children, your finances ought to improve once the little one goes to school, so have you thought long term about whether a reduced repayment plan until that time would work, leaving you able to increase the repayments when you are no longer paying for nursery fees.
It would definately be worth you discussing this with an insolvency practitioner, who will be able to discuss the advantages, disadvantages and implications of all options currently available to you, and therefore help plan for the future rather than worrying about the past.
Regards, Melanie Giles, Insolvency Practitioner