112 litre tank, plastic plants , few hiding places, fish ive got is: 2 clown loaches, 2 peppered corydoras, 1 molly, 2f + 1m guppy, 2 gouramis, 2 black phantom tetras, 3 neon tetras, 3 harlequin tetras, 4 penguin tetras and 2 common plecos.
Ive got a Nutrafin test kit, which i use nearly every day.
So should i get rid of the carbon foam or just keep it for the bacteria?
wow! no wonder you're having problems - the tank is WAAAAAY overstocked!
Clown loaches get to a foot long each, and the common plecos between 1 and 2 feet long each, so these are way too big for your tank. Also, plecos are very messy so they will be producing lots of poo, which might explain some of your problems. The rest of them are alright sizes for the tank I think, it's just a case of working out numbers - basically the most efficient rule is 1inch of fish (not including the tail) per gallon of water - your tank is approx 30 gallons, so that gives you 30 inches of adult fish. If you go to the species listings for each fish they will tell you how big each fish will get and you will be able to work it out.
If I were you I would immediately rehome the clown loaches and the plecos - maybe give them to a local fish store, or swap them for store credit or something, but that will definitely help your situation. It sounds horrible, but quite frankly they will die/be extremely unhealthy if they stay in your tank. That, and they are overloading your filter which might be some of the reason why you're having issues with bad water quality.
It's up to you whether you keep the carbon or not... how long ago did you replace the pad? Personally, I'd remove it, but that doesn't mean you have to, or should. If you wanted to you could wait until the mini cycle is over and then remove it, but you might risk another one, on the other hand if you remove it now you may prolong the one you have - it's swings and roundabouts I guess...
Edited to add: if you push your siphon down into the gravel you'll get a huge cloud of muck appear out of the gravel. Once that's cleared, pull the siphon out and push it down somewhere else - do that over all the gravel (except where you have plants/ornaments). It doesn't have to be spotless, but it does have to be done! when you're doing it every week you'll find that the clouds are much less dark/dense than if you don't do it so often. Every now and then (like once or twice a year) you can take all the decor/plastic plants out and clean underneath where they were.