I know it's well past, but I've only just logged on - sorry). If your friend can get an appointment with a trained debt advice worker, either at her local CAB, an independant advice centre or Money Advice Service(sometimes offered through local authorites), they will be able to advise her on renegotiating her debt with those she actually owes money to. She may have a problem, if she has a contract with Baines & Wotsit, as she might now also owe them money - but they will just have to be added to her list of creditors.
The first thing the debt worker will do is determine if she's getting all the money that she is entitled to (WFTC, etc), then support her in dealing with priority debts (mortgage, CCJ's, loans against house, etc),look at gas, electricity, etc to see if there's any cheaper options available (other companies, etc). and start to renegotiate payments with other creditors. A really good debt worker should look into which companies she actually has a legal contract with, whether there are any who doesn't have a legal contract and work something out around each scenario.
If she is really that desperate that she feels renegotiation is not an option - there is always the option of an Administration order. She has to have a county court judgement against her to be able to apply for this. Her debts can't be any more than £5000 and you can't add anything that's guaranteed against property.
An Admin Order consolidates all your debts into one area. She would then make one agreed payment to the court, who will then distribute the money, pro rata, to her creditors. A small amount of whatever she has to pay into the court will be to cover the courts costs of administering the order. But I think that this is included in whatever she has to pay into court, and not to be paid up front.
Whichever creditors are included in the order are not allowed to harass or pester her for any more money for as long as the order runs, as long as she keeps up the payments. In short she won't get any debt collectors knocking on her door or any letters sent.
From what I remember - you have to apply as an individual, so if she has a DH/DP, the debt might be able to be split between 2 admin orders.
She really does need to speak to an experienced debt worker - it's been three years since I used to train advice workers and the limits, etc might have changed. But there may be no need at all to sell her house.
Hope this helps.