I am being sued for simply being associated with a company that cost customers money. I didn't know that company was being irresponsible, but the customers are saying I am liable for recommending their product. If i declare, will I be able have the judgement against me dismissed?
If you're being sued, unless it's small claims court, you need a lawyer.
And if/after there's a judgement against you and you want to explore bankruptcy as an option, you'll still need an attorney. Depending on details, your assets may not be protected from the judgement.
So any way you look at it, you need a lawyer.
Strange that they're holding you personally legally liable rather than the company. That's normally a big part of the corporate veil. You need a lawyer, not a stackexchange.
On aspect of this is that your liability in civil suit can vary substantially based on where you live. A judgement in one jurisdiction may not follow you to another (eg I believe in Vermont they do not honor out of state judgements), so there is an option to simply allow a default judgement and not worry about it.
This a pretty complex decision to get yourself the best deal. You need a lawyer to help you make the right call.