Whatever, you do, don't 'confront' your landlord. Explain to them that you can no longer pay your lease and that it would perhaps be better if you left and they got a new paying lessee in the site, rather than having to go the whole litigation route.
However, it is their choice. They have the signed contract (brass in pocket). It depends on how friendly (or unfriendly) your relationship is/was with the lessor. It will be expensive for them to litigate against you - and it doesn't sound like you have a whole lot of cash.
But if the landlord wants to (for whatever reason), they can and will win the litigation. You could be looking at some wage garnishments if this happens.
My advice would be to get out and find a second job working for someone else and make those lease payments.
Doctors put a lien on your settlement. That's how it works. In order to get you treated for your injury, a personal injury gives the treating physician a letter of protection. This guarantees that the doctor will be paid out of any settlement or award you get. The lawyer must pay the doctor out of those proceeds. Sometimes the lawyer can negotiate the medical bills down. Most doctors will not treat you without insurance paying the bill or without the protection letter.
So it seems to me either you just don't understand how it works, or you are one of those people who think all lawyers are trying to rip you off. Either way, you don't know what you are talking about.
EDIT LATE FEES: Doctors who accept a protection letter do NOT assess interest and late fees while the case is pending and more often than not end up adjusting their bills when the case is settled. For some reason, people seem to think that when a lawyer takes a fee and a doctor gets paid they are getting screwed. While it is possible for someone who is not a lawyer to work this kind of arrangement for themselves, it usually doesn't work out. Especially if the person is seriously injured. Not to mention, a person who represents themself has a fool for a client.