Capital One and the payment protection plan

Someone make sense of this please?

I was living in chicago 4yrs ago with a credit card from Capital One. I was paying over $200 a month for a payment protection plan charge, along with my minimum payment due and if it was a good month more than I had to, I was in excellent standing and never late -

The payment protection plan to my understanding - was in the case I lose my job, 2months of minimum payments waived, up to 6mos deferment, and in some cases other leniencies.

Unfortunately - and not to explain my whole personal ordeal of how I came to be forced to move out of the state of IL in which I had to leave my job. Long story short - I was stalked by a methhead complete stranger - who attempted to attack me at my job then eluding the police from that incident broke into my apt, and tried to murder me :|
The nut was arrested the next morning for attempted battery, because I actually never was hurt. So apparently, in chicago, if you dont get hurt then they didnt try to kill you.

So I didnt really quit and definately wasnt fired. But being that the person was let out on an ibond all the while contacting me from jail threatening to kill me, I had little choice but to move and leave my job.

So I move and tell capital one my situation - they told me that because it wasnt a "factory layoff" my circumstances didnt apply.
Keeping in mind, I supplied all information and documentation to prove this incident.
Also - I never worked for a factory?!? I was a bartender - so why had I been paying $200 a month for a service for over a year that I had no chance of it even applying to me.

SO of course upset at all the money I wasted - I told them cancel the protection plan immediately. I started receiving my bill which I could not pay - Total debt $1800.
I had no job yet. I spent my entire savings moving on a 24hr time frame. I move to Las Vegas to be closer to family members, but had my own apt.

Phone calls started.
Phone calls to my cell phone 24hr a day. Sometimes 6AM on Sunday, 2:15AM on a Wed. all hours of the day/night, week - several times a day, several times a week.

At this point I am working - but so upset with this companies practices I choose to pay my other debts first, being behind on everything, and very upset about the payment protection plan scam, which I told them exactly that.

18 months goes by -
I now can afford to make a payment, but it has gone into collection. I attempt to make payments to the agency - now the bill is over $8,000. They had never canceled my bogus payment protection plan, and had also been charging me $35 a month late charge.
OUTRAGED at the total, and blaming myself for not pursuing this more seriously, I agree to a payment plan. They told me they could only accept a payment if I qualified for their payment plan which required 30% down payment of total cost. I had about $200 a month that I could afford to send them nothing saved up. I told them, well, maybe in 6months I can qualify for your payment and left it at that.

My mother starts getting phone calls.
My 83yr old grandmother starts getting phone calls.
They not only told her of my debt, which she is NOT a cosigner or liable for this debt in any way, but threatened her, harassed her, threatened to repossess her vehicle, reposses her assets, all using her address and phone number which I had nothing to do with except maybe had some old magazine subscriptions still in effect?
They start sending letters to my mother's home address in Texas, stating that I, my name, is being sued in Texas at her address.

I'm thinking this is crazy! How can they sue me in a state I havent lived since I was a child using my mother's address or threaten to reposes anything of hers, she has nothing to do with my debt. I've been married 12yrs, my name changed, divorced 6yrs ago if anything go after the mortgage I DO have in NJ or after my ex-husband who lives there?!?

Out of pure sheer bad luck - I come home for Christmas that year, and on Dec. 21st I am served (in a way) at her home with the papers that I am being sued by Capital One at her address in the state of Texas. In a way - because the person asked my 83yr old! grandmother if I was home, called me to the door, and the lady handed me the envelope, without saying a word nor did I sign for anything, nor did she inform me what I was receiving and walked off.

I read it - it says Im being sued in the state of Texas at an address I dont live at or own or have anything to do with really except it's my mother's house. :?
I live in NV, acquired the debt in IL, and have a mortgage with my ex-husband in NJ.
Where does Tx even come into play??

5th year into this ordeal-
my mother receives a letter that a judge has made a judgement against me.

I letter I was "served" said I was being sued. It never said when or where to go, or who to contact.

If there was a court date set - I was never notified.
I was definitely planning on showing up and was actually looking forward to telling the judge all about the harassment, the contact and harassment to my mother and grandmother, the bogus protection payment plan, the fact that I never lived at the address, not even in city at that address. I never had the chance.

She gets a letter out of nowhere, saying judgment has been made.

What can I do at this point??