How do I prevent creditors from going through with a lawsuit?

Once a delinquent account has been transferred to an attorney to file suit, it is certainly more difficult to negotiate a lesser settlement. It does happen, of course, but it is more rare than when an account is being collected by a debt collection agency, or even by the original underlying creditor. Typically, if an attorney has already taken the time to review the case and prepare, draft, file and serve a complaint, they've already got sufficient time and money invested in the outcome of the case so they're less likely to accept an amount that's less than the full debt and likewise less likely to accept a payment plan, more often preferring instead to push forward and win an easy judgment which they can then collect upon. Of course, certain facts regarding the amount at issue and the nature of the underlying debt may alter the scenario, as would your ability to pay. Simply put, it never hurts to attempt to make an offer. Usually it is beneficial to have an attorney represent you and conduct the negotiations. Attorneys are typically more effective at reaching an agreement, and likewise the presence of an attorney representative indicates to the other side that proceeding with the case will not be as automatic or as smooth (read: quick and easy) as they'd prefer. The context of your question does confuse me a bit, however, as you indicate both that you are currently being sued and then also "if" you were to be sued. Often an attorney will issue one demand letter prior to filing a case in court. If you've received a demand letter but have not yet been served with a complaint and service of process, you're lucky (relatively speaking, of course) but need to act fast. If you're sued and served, you'll have to answer in court or risk defaulting. Upon either a default or other judgment, the attorney will likely begin collection procedures, which might include liens, garnishments, or other process, depending on the facts. If it gets to that point, you'll certainly want an attorney to represent you. If you are considering bankruptcy, likewise, you should consult with a bankruptcy attorney to discuss with you the various options available to you and the effects you're likely to encounter. A huge hit to the credit score is but one effect, as bankruptcy can effectively prevent you from obtaining credit cards, procuring a loan, or otherwise borrowing funds for at least 6 or so years. Finally, the suit is not likely to affect your husband directly, in that he won't be named. A bankruptcy proceeding may have some indirect or even possibly direct effect, depending on the circumstances. You should re-post parts of this question to the Bankruptcy section to get a more clear answer. At the end of the day, the best course of action ultimately depends on a thorough evaluation of your case and all the attendant facts. It's likely best to consult with and retain an attorney earlier rather than later to help with this process and find the best resolution possible.

You obviously have a lot going here and you really should sit down and talk with an attorney. What I see as the long and short of the matter is that you should probably consider skipping straight to bankruptcy. Is there a chance the suing attorney would work out a payment schedule; possible. May require full payment, partial payment with monthly payments, etc. But miss any payment and garnishments against wages or bank accounts will likely follow quickly. Is there a chance the amount could be reduced; possible depending on creditor. But consider if the amount is reduced that you are also subject to receiving a 1099 making the amount "forgiven" a taxable amount to you. With bankruptcy the amount is discharged rather than "forgiven" so no tax issue. There is a lot to consider in determining if bankruptcy is actually the best course of action for you and not easily addressed in a quick email response. Talk with a local attorney ASAP to give you best direction on how you should proceed.