Newbie advice hope for 7 Fearing 13

[Cheeseater]

Hello to everyone, I am in the early stages of preparing to file bankruptcy. At first I thought about trying to settle but realized I didn't have enough cash and also figured it would ruin my credit as much as going bk.
Here are some financial facts:
Mortgage 382,500 payment $2773 house value 390K
Auto lease $447
Auto loan 32,000 payment $520
unsecured debt 111,000 min payments $2700
67K BOFA 5 cards
12k Amex
7k Citi
7K Discover
7k Cap1
The rest spread over six cards.
Married spouse income 7K gross a month
I have a sole proprietor that nets 0
401K spouse 67K
I have no extenuating circumstances to excuse the debt. Just like a frog in water I realized when it was too late the magnitude of my situation. I refinanced my house last year and payed back 45K in unsecured debt but used the cards again to make up for the drop in funds from the higher house payment. Earlier this year Amex began the waterfall by cutting my limit down to the balance and all others soon followed suit. I have stopped paying all my cards as of now. I didn't pay citi last month as well as one of my Bofa cards.
The first lawyer I saw told me my only option was 13 with a 10% payback. He never asked about my expenses only that I was 13 no doubt about it. The next lawyer I saw went over all our expenses and said probably 7. Is my case a red flag for the UST. I started pulling my account statements and some have not been used for years, just have been paying minimums forever. Any advice or insight would be appreciated.b Thanks in advance.

[TEW]

Welcome to the forum
I would see a couple more attorneys. DO not touch that 401K you get to keep that. you have high income so the UST may take a look and he may not find anything and leave you alone.
good luck

[hamburgervol]

You mortgage is almost 40% of your income. My mortgage was pretty high as well. I passed the Means test because of that factor.

[diebroccoli]

did you use the cards for your business? Are you planning to keep the home? Does your business have assets? These answers may help or hurt your CH7 case.

why do you think your case would be a red flag for UST?

On a somewhat related note, AMEX cutting my limit to 1/2 the balance set off my waterfall. If not for the dire situation i am in, i might actually stop and laugh a bit about how dumb AMEX is. They could have let me keep goign and fight my way out, or push me into a corner where the only outcomes mean they get pennies on the dollar

[eddiep]

have you checked the median income for your state or taken the means test yet. You will have a better idea of where you stand. here is a link that may be helpful

https://www.legalconsumer.com

[Cheeseater]

A large percentage of the charges were business related. I am the primary asset aside from a few thousand in tools. I worry about being over the median and having to go through a 2004-b audit. I have a lot of deposits to my personal checking accounts that might raise questions of unreported income if deeply examined.