being sued..

I just have a quick question, I love how human beings say that but really it is been on your mind for like 3 days. Anyways to get to the point. I was stupid and young at 18 and was given a 5000 credit card from BofA. I always made minimum payments on it or would try to pay it off. After that I had a child that forced me to move from a big bustling city to a slower paced enviroment where I had more family. As soon as these changes occured I called the credit customer help line and explaining the situation that I was looking for work but I could not pay a 22% interest rate, was there any way it could be lowered for a few months it was not. I tried paying them what I could, which of course did not suffice. Soon after with arguements over the phone, the APR not going down in the least while asking to be on a hardship program every time, it came between feeding my child or paying a credit card bill. I chose to feed my child. I recieved a letter stating that they would settle for $1000 instead of $5000. I called directly and told them in a few weeks I would be able to save this money and I would send it. The settle was only good for the week that the letter was sent out. I asked if there were any othe options. no. was the reply. several years have passed I am now 28 instead of 18 and just recently I was served from a law firm stating that I owe them $13,987. even though BofA has written the $5000 off of there books several years ago. To try and appease I offered my 401k of $3300. This is not enough to settle, I can really offer them nothing else. I am a single mom, I work full time and am also in school full time, I live frugaly and paycheck to paycheck. I am wondering does anyone have any advice on this for me? My family is saying bankruptcy...what about a home with a backyard instead of an apartment and a safer car for my son? Will doing that ruin all chances that I may have of that in the future with CHPTR 7 all over everything? Please help I would really appreciate it! Thanks so much. tanya