My life is a financial mess

My husband is a union carpenter and was laid off for a year and half. He is currently back out to work but with the way construcion is going in our area, I'm not sure for how long. I have been working this whole time but all of our money goes to keeping a roof over our head and food on the table.
So, we are currently in foreclosure and hoping to get a modification. We have a bit of equity in the house and hope they will add what we owe to the end of the loan. All paperwork is in and we just wait now.
We are now catching up on all of our utility bills that were all over $1000 at one point and getting shut off at the street on a way too regular basis.
We have seen a lawyer about bankruptcy (we have few credit cards that we haven't been able to pay since my husband was laid off), but haven't had the money to give him to get the ball rolling. We hope to have it the next couple of weeks. We have also been afraid that if the bank found out about the bankruptcy that they would deny our modification.
Now I get a letter from court for our Discover card that was $6,000.... is now $8,000 due to all the fees and interest. They have filed with the court and there is a hearing for a judgement against me to garnish my wages. I wrote a letter to their lawyers and the court telling them we can no longer keep our heads above water and are retaining a lawyer for a bankruptcy. Now I get a letter from the lawyers that they never received a copy of the defendents rejection? I am confused.
Any insight would be so appreciated. Do I have to show up at court if I am not denying I owe? Any insight on the bankruptcy and modification? I never thought this would happen to us. We made a great salary the year before his lay off and now I am worried about not having a place to live. Never take anything for granted, you never know.