Collection Lawsuits: How Should I Answer This Lawsuit

My question involves collection proceedings in the State of: South Carolina

I'm being sued by Bank of America for $5,400. I don't dispute the fact that I owe the debt, and I don't believe I have grounds to dispute it.

I think I may be judgment proof, but I'm not sure. That depends on how the equity I have in my house is measured and how the homestead exemption is handled for married couples in my state.

Our house was appraised at $102,000 a little over 2 years ago. Our lender estimates it's worth about $107,000 now. Our balance is about $61,000.

We own the house as tenants in common. I paid all of the down payment myself, and most of the mortgage payments have come out of my bank account. But I consider the house to be ours, split 50/50. I just don't know if the bank will try to use this information to prove my share is over 50% so that it may one day be worth more than the homestead exemption.

QUESTION 1: Is my house exempt from attachment, etc. because of the homestead exemption?

QUESTION 2: Should I bother answering the lawsuit?

QUESTION 3: If so, how should I answer the lawsuit?

Collection Lawsuits: How Should I Answer This Lawsuit