Is it considered a necessity to take out an interest-bearing loan to pay off accumulated checks due in court, after all attempts to obtain an Islamic loan have failed, in order to avoid imprisonment and protect one's reputation and business?

The debtor is not obligated to sell his property to pay off his debt unless it can be sold at its market value. The ruler does not compel an insolvent person to sell at less than market value. This applies to real estate, cars, and similar items. Some scholars make an exception for a craftsman's tools and a merchant's capital if he cannot earn a living without them. As for the dwelling house, some have stipulated that it should be sold and a replacement rented for him. No jurist has permitted borrowing with usury to pay off a debt, as it only complicates the problem further. The summary is to sell possessions if they can fetch market value to settle the debt, and to avoid usurious loans unless there is severe harm due to extreme injustice (ghabn) combined with a strong presumption of ability to repay.