I'm not your lawyer and I don't know where you live. However, I suspect that your employer will have no standing to sue you and at best can deduct notice pay from salary you haven't yet received, which you probably won't receive since they're going out of business or incompetent.

However, please talk to a lawyer in your area about this. My post is meant to do nothing other than encourage you to find out your rights and the practicalities of the situation and take care of yourself.