You have several potential options if you come to believe that a creditor lawsuit is looming, or if you have just been served with a summons telling you that you are being sued.
The first, most important thing that you can do if you fear a lawsuit is about to happen or you have already received a summons is to contact an attorney who specializes in debt settlement or bankruptcy. An attorney with a background and specialty in these areas will be extremely useful to you.
When you are sued, you have the opportunity to file a response and to fight the lawsuit if you believe the debt is not valid. If you choose to ignore the lawsuit summons and not file a response the judge will assume that you agree that you owe this debt and will enter a judgment against you.
Just as the laws in each state are different, each debtor/creditor situation is also unique. Talk to an attorney as soon as possible for the best results. Your attorney may be able to negotiate a settlement with your creditor that will allow you to avoid the hassles and embarrassment of being sued for a bad debt.