Chapter 7 advice PLEASE!!!

My husband and I owe about $140,000 in credit card debt on 19 different accounts. We stopped paying them all about two months ago because we no longer have enough income to keep them current. We had hoped to avoid BK and somehow save enough money to settle the accounts instead. However, Chase has already moved my husband's account to their pre-litigation department and are threatening to move it to the legal department and proceed with a lawsuit if we don't bring the account current in the next couple of weeks. We're therefore looking seriously at the BK option because we can't afford to have our wages garnished without losing our house.

Here's my question: Is it true that you can't include any accounts in the BK if you have used them for balance transfers, cash advances, or purchases in the previous six months? There are several cards that we did use in that period, since we were (foolishly) still trying to find a way to juggle everything and make ends meet.

If we have to wait to file BK until we haven't used anything for six months, by then our wages may be garnished by Chase. Also, it's possible that by then we won't qualify for Chapter 7 because my husband will be able to pick up some side work during the summer, which will increase our reportable income. (That's the money that I was hoping originally to save for possible settlements.) And that income will be reportable in the BK for six months. So it looks to me like we are in a cycle of not having any options other than somehow trying to get the Chase account (and any others that threaten lawsuits) caught up and kept current until possibly next March or April after my husband's income has returned to its normal level for six months.