Banjaxed, try not to worry but keep communicating with them and get all in writing. (Have you sold the btl?) And as a couple try not to let it invade your relationship ( I know it's not easy) I'm living alone so it's almost easier in one sense. It's hard to know what will happen re a judgement ... All one could do is hope they don't try to enforce it. (My bank sound like they've the temerity to go after me until the end) There can be options to buy it out - an arbitrary sum touted to me was 10,000. I'm not going down that road though. I've already physically lost 130,000 and years of stress and so much missed out on.
Yip the court stuff is hard...after last time I literally nearly cracked at thought of having to go back.
Cost wise am representing myself so it's a day off work, diesel, tolls, parking and cost of some legal advice beforehand on an hourly basis. And their mounting legal costs which will get added into any judgement.
Get advice: get reading and researching and remember there are people and organisations out there to help. They have different approaches though.
I probably shouldn't have let bank bully me into selling the asset though.