A past employer didn't want me to compete with him so he filed a lawsuit against me making false claims, etc... and was awarded a "Temporary Injunction" preventing me from performing my livelyhood. I had no "non-compete" agreement. I have people who can testify that he was doing this ONLY to cause me to file chapter 7.
I have accumulated costs now in excess of $14,000.00 attempting to defend myself. I have now been contacted by his attorney and he is claiming that he will be filing a "Motion to Dismiss".
Any ideas how I should fight this to get my day in court? Any way I can file a lawsuit against him for filing a frivolous suit against me, and how may I recover my costs?

You certainly should speak with your attorney regarding asking for you attorney fees. Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.