It sounds like the bankruptcy lawyer is giving you some good advice. Bankruptcy would clear up the judgment and any other financial issues you might have. It really is not worth fighting the judgment as you probably owe the money and it would be expensive to fight.
For more information, visit www.freebankruptcyinformation.info or checkout my legal guides regarding this topic posted on my AVVO profile.
Legal Information is Not Legal Advice
My answer provides information about the law based on the limited information provided in the questions asked and is not intended to be legal advice. The law differs in each jurisdiction and may be interpreted or applied differently depending on the location or situation. I highly recommend that you consult with an attorney to discuss the specific details of your situation so you can get legal advice tailored to your specific circumstances. The information in my answer is for educational and information purposes only, and is not legal advice or legal opinions. The answer provided to the question asked does not constitute a lawyer-client relationship.
It sounds like "sewer service". You need to get a look at the court's file and see whether the process server perjured himself or herself when he or she swore you were served with papers. If there was sewer service, you need a lawyer to get the judgment vacated. If there was indeed sewer service then even if the other side has a good case there's a good chance the judge will be angered and find a reason to toss it.