Don't be too afraid of rot in your walls. It seems big and scary, but with a small saw, a pry bar, and some basic tools you can pull out and scab in new studs in the wall. Then it's a matter of putting up new drywall/cement board and properly waterproofing your tub surround.
I'd look through some you-tube videos if you're unsure of any of those steps. Really, it can be done by a reasonable handy homeowner.