What should be done to pay off accumulated debts, and is Zakat obligatory, given the availability of a house, two cars, and a sum of cash, with no stable job, and is it necessary to sell the house and cars to pay off the full amount to settle the debts?

If creditors grant you an extension, you are not obligated to sell your car or house to repay the debt, nor are you forced to sell them; this is because it is their right, and they have granted you a reprieve. The judge will not place an injunction on your assets unless requested by the creditors, if your wealth does not cover your debts. Zakat is not obligatory for you if your debts consume all your wealth. It is permissible for you to receive Zakat to pay off your debt, as you are considered someone in debt (ghārim). Your ownership of a house and a car does not prevent you from receiving Zakat, as they are considered essential necessities.