Should we be looking into bankruptcy ??

There are two main types of consumer bankruptcy, Chapter 7 and Chapter 13.  Chapter 7 is available to those who have less than the median income for their area or who have necessary expenses that counterbalance their income.  Most Chapter 7 bankruptcies are completely done in a few months.  Even a person with an extraordinarily large amount of debt can file a Chapter 7.  The chief downside of a Chapter 7 is that non-exempt assets are lost during the process.  They become part of the "bankruptcy estate" and are sold to pay creditors.  That being said, most filers have few or no non-exempt assets and therefore lose nothing.  What's exempt and what isn't is set by law; Missouri has its own set of exemption laws and thus does not use the "standard" federal exemptions.

Chapter 13 is the other usual choice for consumers.  In a Chapter 13 bankruptyc, there is no limit to the amount of income a person can have, and even nonexempt assets can be retained.  However, there is a limit to the amount of debt a filer can have, and having had cancer myself, I understand how expensive treatment can be.   In a Chapter 13, the filer makes regular monthly payments to a trustee, who then forwards the money to creditors to pay all or a portion of the debt. 

It's my understanding that it is not uncommon in a disability case for claimants to receive a lump sum payment for the period of disability prior to the award (confirm this with your disability lawyer; I could be wrong.)  Assuming this is the case, this lump of cash would be an asset of a Chapter 7 bankruptcy estate, and if you're in the midst of a Chapter 13, might be considered income to pay creditors. 

As SJZ advises, you should figure out what your "bills" are.  I put this in quotes because there are different types of bills, some of which would drop off with a banruptcy.  Housing costs, car insurance, groceries--these types of necessary living expenses would not be reduced by a bankruptcy, but bills due to unsecured debts such as medical bills and credit cards would be. 

After you figure out how much you owe to whom and the monthly expense for this, (the court's website has forms; look at "Schedule J" for a good starting point; mow.uscourts.gov) then talk to a bankruptcy attorney; many offer free consultations. Talking to an attorney does not mean you've decided to file, rather, you need to talk to one to get more information than I can possibly give here in order to decide whether or not to file.  S/he can also give advice on the best way to manage a possible lump sum payment. so that you do not wind up as a bankruptcy horror story, i.e, "they could have kept all the $xx amount, if only they had known to  ..., instead of doing what they did, which was to ..."  And I don't know your particulars, so I can't give more specific advice.   

I've answered this question before--but---yes.  Get advice from a bankruptcy attorney to learn what debts can be reduced or eliminated and which ones you must or should keep.  There's no good reason to rob Peter to pay Paul if your debt to Paul can be reduced or eliminated, but the debt to Peter must be paid in full.  Get advice before you mortgage your house, take out a loan on your car, are sued by a creditor, fall behind in your taxes or support payments, or do anything else.  And beware of the many companies screaming at you to "Avoid Bankruptcy!"  They often promise far more than they deliver, and there is a limit to how fast the states' attorney generals can work.   

Bankruptcy has a very lasting effect on your credit rating and ability to get credit or borrow--it impacts you for years. It also will put serious and legal constraints on your ability to spend and, depending on the type, may put some of your assets at risk. Also, it only helps with debts to date--not debts incurred after the filing.

If you will be ok financially once your wife starts drawing disability in 6 months, then look for ways to "bridge" through the period of time until then--including talking to your creditors and negotiating 6 month forebearance or reduced payments.

If even if disability you would be unable to pay your debts, then you may need to consider bankruptcy.