Supercuda, did you miss the trailing arm that is attached to the side of the axle housing running forward to the center of the trans crossmember ( presume)? Looks like a late model Camero rear axle assembly through under the car, but someone tried to lower it by cutting off about 1/2 of each coil spring. The coil springs are a definite problem, but they may not be the only problem.

No doubt the shocks are worthless as installed, they might even be bottomed out, and the rear sway bar is useless. The lower bars might be too short as well.

I think I would start out by getting the frame up on jackstands until you get 3"-4" of clearance between the top of the axle and the frame, then see what will need to go, or what can stay. You might get lucky and get away with a set of new springs (or air bags), or you may want to start all over.
The rear suspension may have been installed correctly, but they hacked the springs too much and then added rubber between stuff to get the height needed to pass the car on. Gene