Look at pg 2. You deny the claims generally and in the blank space write in "per credit card agreement this claim is must decided by private contractual arbitration and therefore, this court lacks subject matter jurisdiction.
I think at this point you need to file for CH 7 and with a bankruptcy stay, then the proceedings in court are topped. I am not gonna lie the legal situation is dire but You are going to have to get a lawyer to do bankruptcie. Normally I would say it is doable but with significant medical healing going on, and the effects of what meds they may have you on, undertaking a very large scale task such as foreclosure defense is I believe a weighty issue. The loan modification may stay the foreclosure but I believe that ship has sailed with the foreclosure.
I believe though that any, answer to the lawsuit must be filed IMMEDIATELY, and that may buy you some time. Illinois law is not a thing I am familiar with but I will try to help as much as I can. I ask any other members with Illinois experience to please help. Allow me to get home from work and get to the Seadragon laptop of power.
I know what a pain dept collection while trying to recover from a major illness is like.
I tried the same thing. JAMS removed the lawyer from the action until it gets in front of the judge. Then I'll have a chance to try to get them added back on. If nothing else it sure did ruffle their feathers!