You probably can keep it all. Consult with experienced bankruptcy attorneys in your area. Use the Avvo search tool to find an attorney....

Yes but you should not ignore the lawsuit as collectors have been known to negotiate but get a judgment anyway.

Possibly. It depends on many factors including the dates of the various events.

It might not be necessary to continue paying depending on your financial situation, the amount of the debt and many other factors.

It depends on many more facts including your financial situation, the amount of the Debt, the age of the debt and many other factors.

Consult with experienced bankruptcy and debt collection defense attorneys.

Attorneys can be found — Use the Avvo search tool to find an attorney. https://www.avvo.com/find-a-lawyer

Ask a debt collection defense attorney to look at the court documents.

They probably won’t. You can try to make arrangements with them.

Bankruptcy or negotiation for payment of a lower amount.