In May of this year, I took out a loan to catch up on some bills. I was set to start paying the loan back in July. Unfortunately, I was made to leave my job at the end of June. I worked in the airport where you need a secure badge to work. The woman who was in charge of making the appointments and signing off on the paper made no effort to push my paperwork or anything before the expiration date. I figured this would happen, so I had already lined up another job, but that job paid less and it took over two weeks for me to actually start there. Due to the lapse in employment, I couldn't make a payment. I did tell the loan place I wasn't working at the time.

I was hospitalized in the first week of September for a week. No one in my family could contact employer to let them know I was in the hospital as they have no contact information available online. I didn't have access to my phone which had my supervisor's number. When I got out, they texted they'd terminated me and it was final. I am still unable to find a job, and now on top of this loan, I have a ton of medical debt. I have to answer this claim, but I've never dealt with anything in a legal sense. Do I just admit to the claim?

The options on the answer form are:
Defendant admits to the claim of the Plaintiff
Defendant is not indebted to the Plaintiff in any amount
Defendant paid
The debt claimed was discharged in bankruptcy
Other
Counter claim

I'm trying to file for bankruptcy since I am unemployed, but I am having trouble with that as well.