I think you have to take things one step at a time.
You have taken the first step in that you have faced up to the gambling problem.
The good news is that you are still solvent, if I understand your figures correctly.
House value: €500
Mortgage: €280k
Loans: €195k - Loans 170; tax:5; wholesalers: 20k
Net assets: €50k
Your next priority is to stay in business and rebuild it so that you have an income.
1) Do you have an income from your business at the moment? Why are things going to suddenly get going in March 2008?
2) Your business suppliers are the absolute priority. If they stop supplying, you won't be able to earn any more money to pay off the other loans.
3) Are the loans connected to your business? If you don't keep them up to date, will your business be affected? With the help of MABS, you might be able to get reduced payments. I imagine that the advice of MABS will be to pay some small amount to each lender, to show them that you are not running away from your loans.
4) You have to consider the possibility that you may not be able to afford to keep your home. That is not as bad as it seems at first. If you sell your home for €500k and pay off your debts, you will save about €23k a year in interest payments ( 280k@5% + 170@10%). You can probably rent a similar house for around €12k a year.
It's not ideal, but no one knows what is happening to house prices. If they fall further from their present level, you might be able to buy back a similar home for less money. However, it will probably take you about 5 years to build back your credit record.
5) You should not rely on the slowness of the court system to delay the inevitable. You will get caught with legal costs and judgements against you which will make it very difficult for you to ever get credit again.
Brendan