I received an arbitration summons for a debt owed. I now have over $70,000 in unsecured debt. Should I go to court or just let the judgement happen?

I sold my home 6 months ago and did make some money off the sale but had to repay my children who had been paying my bills until the house was settled. I am worried about what would happen to the money from the sale of the house. Can my childrens accounts be frozen ansd can they be made to repay the money I gave them? I was told I need to wait until 1 year after the sale of the home to file bankruptcy. I am concerned about what will happen in the meantime with this summons. Should I go to court and tell them I have nothing or just let the summons happen. My husband is unemployed and we are barely making it right now. I think the debt collection agency thinks I have all this money from the sale of the home. I am really worried about what they can do to my children's accounts.