So here it goes.

My wife got summoned from a debt collector and had copies of the original creditor Citibank. The debt collector (attorney) does not want to settle and it looks like we will end up going to court. I never ever said I won't pay but I have said I can't pay. Everything is under my wife's name and she is a homemaker. She has not worked for over 3 years and won't be working anytime soon. The only thing with her name and mine is our home. I am not really worried about a lien or something since we have no plans of moving anytime soon. So it will probably be there for 30 years or more.

Besides that what is the worst case scenario if we end up at court?

They get a judgement, depending on the state, they will try to garnish bank accounts in joint names.

Bad credit

Like Chuck said, they will take you to court and, depending on the state, will try to get a judgment. At that point, they can garnish your wages. However, it'll probably be 30 days before the first garnishment.

You've said the attorney doesn't want to settle. If this is a big enough debt -- and I'm talking big enough to declare bankruptcy -- tell the attorney that if they don't settle, your wife is (or you and your wife are) going to declare Chapter 7. Nine times out of ten they're going to settle so they can get something. If you declare Chapter 7, they can't come after you anymore. However, you'll still have the bankruptcy hanging over you for 10 years. I believe the lien would only be on there seven years - but don't quote me on that.

If I were you, I would try and gather up as much cash as possible and give the settlement another try. A lump sum is more attractive than drawn out monthly payments. Plus, if your family, etc. were to borrow you the money, your interest rate on the loan would be lower than anything else you'd be able to get. Plus, you wouldn't have the ding on your credit report. Just make sure you pay back!