Please, please, please, please - ad infinitum - have your parents consult with an experienced real estate attorney in their area who can properly advise them. There will be fees for the consultation (remember, you get what you pay for, so a "free" consultation usually gets you nothing of real consequence), and if those are onerous to your parents then perhaps you and your siblings can chip in. Your parents should also consider whether it would make any sense to file for bankruptcy; there are more options than just a liquidation bankruptcy and, for example, a Chapter 13 bankruptcy might allow them to effectively deal with those credit cards without having to sell the house - effectively - to pay them off. To get proper advice on that, however, requires that your parents consult with an experienced attorney in their area.
Another thing to throw into the mix is the question of estate planning - not necessarily planning to pass assets on to you and your siblings, although that would be a definite plus - but to plan for potential medicaid issues, in which the value of the house might be at risk if either of your parents should end up requiring medicaid coverage from, for example, long term nursing home care.
I would suggest that you and your parents think of the legal fees, least for an initial consultation to get an idea if it's worth going forward, as a form of insurance premium because you're effectively paying to provide your parents from at least a little protection from future risks and mistakes.
This isn't legal advice by any stretch, period, so you and your parents definitely owe it to yourselves to get some real legal advice before they take any irrevocable steps.