Being Sued by Citi, Court date set. Need Help....

I will try to make this as short as possible. I have successfully settled with 6 creditors over the past year paying no more than 35% of the total due. Our last one was Citi. They have been a nightmare. National Enterprise Systems was horrible to us and we had a settlement worked out for $3500 out of a 10K debt(after all late fees/etc had been added on). However, they refused to take a paragraph out of the letter stating they could add charges onto our account after we sent them the settlement payment. Absolutely refused, and I was not about to send a company with their reputation that amount of money without a firm settlement letter stating we would be paid in full upon receipt of our money order. THey got mad, pulled the offer and we didn't hear a word for months, and then got a letter from a lawyer in TN (where we live) saying they are now representing Citi. I sent a debt validation letter requesting the info within 30 days of receipt with signature required/certified mail. Well, 3 months later we get a packet sent Priority mail with no delivery confirm. from them. The only thing they included in there was all of our cc statements and a print off of the agreement made with Citi when we first got the account years ago. They left out half of what we requested in the debt validation request, primarily the proof that Citi has sold them this account to collect, and that they are legally allowed to collect that debt in our state. In my debt validation letter, I required 30 days to look over the information they sent to me.

2 weeks after receiving their packet, I was served with court papers saying I'm being sued. I responded to that in writing (also CMRC) informing them that I needed proof they are indeed working for Citi, and that they didn't give me the 30 days to look over the info that was required in my letter. I also asked them to please contact me via Mail to try to settle the account since we've settled 6 out of 7 accounts thus far successfully, and it would be best for both of us to avoid court if at all possible. It has been 3 weeks and I've heard nothing. The court date is coming up the first week of October. I'm in the middle of a high risk pregnancy with about 3 months to go. I need help from the experts.

How do I prepare for court? We are living in my mother in law's rental house, I cannot work (doctor's orders) and have been out of work for over a year. My husband's hours have been cut down due to this lovely economy and we are probably close to poverty level on our income, although God has taken very good care of us with a roof over our heads and two cars that are paid for. So my big question is, what is the worst that can happen? A judgement on me (the account is soley in my name. Not my husband's)? Can they take our cars? Can they garner my husband's wages? Should I take my name off the cars so they are only in my husband's name? The two cars are our only assets in the world right now.

The sad thing is we had the $3500 in February when we were trying to settle with NES, but since then my doctor bills have eaten up our savings and now we don't have it in savings to pay a lump sum (but we will have a tax refund in Feb I'm happy to designate to a settlement amount). And we don't have any left over per month to pay an installment plan. I really cannot stress over this so much because it could send me into early labor and I'd have a preemie in the NICU over an old credit card bill. I just need to know what is the worst that can happen so that I can stop having anxiety about this? We cannot afford an attorney, so I will have to show up in a wheelchair in court with my husband to go before the judge myself. I just don't know what to bring/prepare/etc and if I should have my name taken off the cars.

Does anyone have any advice? I appreciate any and all advice immensely!!