Generally state law protects a person from one garnishment. Your husband by himself or through a lawyer can defend the law suit and likely work out a repayment plan. I am assuming you do not have a lot of other debt to consider filing a Chapter 7.
It is very important that you contact an attorney regarding this matter. More information is needed to respond to your post. For example, in Nebraska (I assume the case is in Nebraska given you are asking from Omaha) there are certain exemptions to garnishment. You indicate that your husband has End Stage Renal Disease, if he is on disability, the entirety of his monthly payment is exempt, but can be garnished if the funds are mixed with non-exempt funds.
Many times a lawyer can help negotiate a lower monthly payment amount. If bankruptcy is your best option, I would suggest contacting a lawyer. If you cannot afford one, do not hesitate to contact Legal Aid.
Get a lawyer and fight the collections.
Most lawyers will give you a free consultation if you ask for one. We do this all the time, but remember that our time is valuable and you should stay with the people who help you the most.