Pick your lawyer, and pick a strategy with your lawyer.

It makes little sense to pay your creditors with the money before you file unless you intend to create a preference situation. If you don't intend to create a preference and you intend to use the money to pay creditors, why not just list the pending or completed settlement on your schedules and let the trustee deal with it?

If you are sued before you file for bankruptcy, you will want to be certain that your bankruptcy lawyer is aware of the suit such that notice of your filing can be served on the court.