The latest statistics on an offer in compromise indicate that less than 1 in 7 is accepted. When looking at an OIC, IRS looks not only at what your income is now but looks at what they project your income will be in the future. If you have little income now, but they believe it will increase in the future they generally will not accept an OIC.
If for example you are disable now and the anticipation is that you would not be able to return to work then they are more likely to accept. If you have something that shows that in the long term the likelihood is that your income will not increase, you may find that the OIC is accepted.
In looking at an OIC, IRS has specific guidelines it must look at for expenses. They will not take into account excessive debt or expenses. If your family size is such that your amount to allocate for food for the month is $250, then that is all you get. They look at all living expenses that way - you either get what you spend or what the law allows them to allocate.
If you cannot currently pay the IRS, but anticipate you will be able to in the future you could consider asking to go into uncollectible status. That means the debt sits out there, with interest and penalties accruing but no collection activity is taken. Once a year or so, IRS will verify the income to determine if you should come out of uncollectible status and be required to start making payments. This option might give you the ability to have some time to pay off other debt, reduce your everyday living expenses, or increase your income.
Certainly, your best option is to be set up to make installment payments that you pay over time to get the debt paid off.