Will I end up 2004-b or presumption of fraud?

[Cheeseater]

I want to thank everyone for their advice and sharing your experiences with BK. I and my family have reached the point where we need to do something about our mounting debts and feel that chapter 7 is our best alternative. I have considered and am still thinking about other options including debt settlement. From reading these boards I have become aware of certain issues I was not told about by the lawyers I have consulted.
Lawyer 1 told me I would be 13 but would run a means test anyway. But he was adamant that I would be 13 with about a $200 month payout for 60 months.
Lawyer said after running my numbers for about 45 minutes I would probably be 7 but it would be close.
I have read post about chapter 7 cases being flagged by the UST as having a presumption of abuse and special 2004-b audits on these. My question is to those of you that have faced these. Were you singles out because of high unsecured debt? high expenses? high income? a combination? or is it just bad luck?
I am married with 2 children, my wife works a full time job. I run my business as a sole proprietor and care for my children. My debts were mostly run up slowly over a period of about 10 years a little quicker with the arrival of children. I refinanced my home about a year ago and payed down 45k in CC debt but quickly ran it back up again because the higher mortgage was killing me. I will list my income and expenses below leaving out my business that will take a while longer but I usually show little or no profit from.

Income $7040.14 month

expenses
Mortgage PITI $2835
Term life $ 41
Water/sewer $ 130
internet $ 29
Sat TV $118
phone $ 40
electric $145
Nat Gas $130
Car Ins $75
Child Care $890
Auto lease $447
sub total $4889

family gym dues $180
Gymnastics $147
Hair& beauty $160
medical $100
prescriptions $50
food $850
Car repairs $75
fuel $240
clothes $200
dental $30
Trash pu $20
school lunch $20
Home maint $125

Sub total $2197+$4889=$7077

Entertainment
Kids gift for bday parties $50
netflix $24
park passes $24
sub total $98

$7077+98= 80 for dry cleaning= $7255

7040-7255= -215 a month

in reality its more like -3000 with cc payments. My business is losing money right now due to constant operating costs. Can I take the past 6 month looses against my wife's income for the means test? Please feel free to tell me which expenses the TT will laugh off my petition.
My debt is about 118K CC 67k Bofa, 12k amex , 7k citi, 7k discover, balance various cheese. I have another car payment of $540 montly that goes through my biz the loan balance is 30k.
How do I look other than over extended and screwed? Thank again for all the help and having somewhere to turn for help.

[justbroke]

Does that income gross or net (after taxes). You're over median, and some of your expenses will certainly be questioned.

It is pushing it, and with income that high for N.C., the Trustee will probably pull the presumption of abuse flag. Especially with > $100K in unsecured debt... your case will be referred to the U.S. Trustee. I don't think you'll avoid the scrutiny with that income level, and that type of unsecured debt... if you're filing a Chapter 7.

[Cheeseater]

That's what I fear. The income stated is gross. The wild card is can my business losses be applied against her earnings? It's going seven or wild west.

[justbroke]

Business losses absolutely cannot be used in the income determination. That's a no go. In a Bankruptcy, a business needs to break even (at worst!) or be profitable at best. They do not allow negative cash flow. (Been there... done that.)

[Cheeseater]

What if I move the vehicle to my personal side I just purchased it, along with its insurance and cell phone would add another $790 making me -1010 a month?

[justbroke]

I don't know what you mean by "move" it to the personal side. Is it already registered in your name? I don't remember the legal formation of your business (LLC, Partnership, S-Corp, C-Corp, Proprietorship, etc)?

[Cheeseater]

It is owned by my wife. I'll finish my paperwork and go back to the attorney. The more I research this the more I think I am going to end up 13. Thanks