Bankruptcy is an option. However, before we get to that, you there certain steps you need to take immediately.
The first is that you need to file an answer with a general denial. Basically, you use the heading from the petition it looks like this:
Cause No. _______
Capital One $ In the ____ court
v. $ of Smith County
Your Name $
Defendant's Original Answer
To the Honorable Judge of Said Court:
Comes Now, Defendant _________, and files this Original Answer.
Defendant denies each and every, all and singular, allegations in Plaintiff's Original Petition.
Defendant shall show that Plaintiff's claims are prohibited by the Statute of Limitations
Wherefore, premises considered, Defendant _________ respectfully XXXXX XXXXX the Court require Plaintiff to prove its claims at trial, and that after the trial the Court dismiss Plaintiffs claims, and grant Defendant such other and further relief, in law or in equity, to which he is justly entitled.
Once you have this on file, then you need to think about what the assets you have are that you want to protect.
If Capital One wins the lawsuit (which now they have to go through the act of doing since you've filed an Answer), they can get a judgment which will attach to your property. They can't force you to sell your house, but they can seize bank accounts (if they find out where they are).
Filing Bankruptcy is a much more complicated matter and actually requires money for filing fees etc. However, if you have several debtors threatening to file suit, it might be wise to consider this. But it is almost impossible to have a successful bankruptcy without hiring an attorney, and you would end up wasting more money and time than you'd save in the long run.
In the end, if you don't have any assets, then you are what we call "judgment proof", meaning that a judgment against you doesn't really have any effect because there is nothing to take. It ruins your credit and it places a lien on your house (that only activates if it is sold if the house is your homestead).
I recommend filing the answer and going from there. Please let me know if you have further question.