Charge Offs

I have several questions I hope you can answer. Due to circumstances beyond my control, I am behind in several credit card/dept store card payments. One large one is threatening to "charge off the account to bad debt". What does this mean? I can't even afford to file for bankruptcy which is why I haven't done so. I live on a small SSI check. Once this acct. is "charged off", what will the credit card co. do? can they sue me? attach my bank acct? I have no assets other than a 10 year old car and a mobile home which I live in but is owned by the bank. I have kept that payment up so I can have a roof over my head.

2nd part is: I have a social security case that is going to a remanded hearing. If I were to win that and get back pay, could these companies get it? or would I have to pay the debt if I filed bankruptcy after getting this money? Also, I have an attorney suing an insurance company for bad faith after terminating ltd benefits. If I won something from that case, could the creditors get it? Just from my questions I am sure you can get an idea of the problems I have been thru this year!