Domain hijacked - what options do I have?

I have been told by my domainhost that somebody has 'hijacked' my domainname and is sending out spam that appears to come from my address.

I am not sure I'm using the correct terms - here's an example. My website works fine. But the server at which my website is placed has reported that they get a ton of bounced emails that appear to have been sent from ..., plus a load of complaints. 

I've been told the domain host has a filter up to stop the bounced spam from filling my mailbox, and they say the only remedy is to let die and move on to a new domain. 

However, my business is called Hello, hence the domain , and my reluctance to change this. 
I could in principle ignore the problem and go on using it. But I'm afraid newsletters from might bounce and since there is a filter, they may disappear and I'll never know. 

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