First, your whole life is NOT screwed up. You have good friends, a partner, good credentials - you are doing better than most people. So you have a little cash flow problem. That isn't going to ruin your life.
I think the best thing to do, if you are willing to finish your degree, is just go talk to them. Tell them you have been chronically ill and you have trouble keeping up with the work ... that isn't exactly a lie if you are depressed and you don't have the energy to meet your responsibilities.
You could also declare bankruptcy, but I'm not very good on financial stuff. If you don't want to complete your degree though I'm sure there are financial options.
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