What is my plan of action when being sued by a credit union?

I am required to attend court over a debt of nearly $3,000. They are suing for a delinquent account with a loan and a credit card. I tried to pay them with a 401(k) cash out from previous employer, but they wouldn't cash the check (about $5,000), I never went and paid them when I did cash the check. I have sent a written request for a copy of the original statement of delinquent account and agreements made between union and myself, post dated and return receipt attached. I have not received either document. Tuesday is when I will be in court, what am I to do? I'm 23, with one child, unmarried, and currently unemployed. In August, I will go back to being a full time student, and in June I anticipate earning a license where I can find a job who pays starting around $15. My fiancé encouraged me to just ignore the debt, saying it would drop off after the statue of limitation. Worst. Advice. Ever. Please help!