Possibilty of getting sued

Hi everyone I am going through some hard times these fast few years. I have an unsecured credit card debts that was sold to a CA whom had called me few times demanding payment. I explained to them that I have every good intention of paying of that debt and that currently my financial situation is so difficult that I was not even able to participate in college due to dufficulty of paying for school costs. I explained to them all that I can afford is paying $50-$100 per month. They said they wont accept that and only want the balance paid in full along with all the late fees and interest accumulated even after they purchased it from the original credit card company. I told them I am not able to pay the whole thing since I can not even pay for my last 2 terms at university to be able to get a real job that pays me well enough to pay the debts. They stated that they will sue me and that according to state of Illinois laws I can get my wages garnished. I am scared I dont make much at all. Can my wages be garnished?? I am really considering doing a chapt 7. If I receive a notice of being sued is that too late to file for chapt 7. Any suggestion or words of advice is appreciated. I am very nervous. Thanks, Neginac