I've got what some refer to as a hammer toe, there is a nerve running right where my shoes press. What can I do?

See a foot Dr. Terrible issue. I would want to see a podiatrist (foot dr.) and listen to their advice. If in doubt, get more than one opinion.
Have it evaluated. There are conservative and surgical options. Different surgical procedures may be performed depending on the severity of the deformity. The joint may be left separated or fusion of the ends may be attempted. For fusion, the cartilaginous ends of the bone are removed and the ends are approximated and stabilized via a wire, screw, pin, or implant. Tendons may need to be cut or lengthened.