Legal Question in Bankruptcy in Texas

I live in Dallas, TX and I have massive debt after paying legal fees for a custody battle that lasted almost 12 months (kid's mom was using meth and living with a registered sex offender - so the action was necessary for my children's welfare). Recently I had to borrow from my 401k to cover hotel and living expenses after damage to the house I live in, and the insurance company has weasled out of reimbursing me. My income is $62k per year and I just got a $2700 bonus. Because of automatic deductions for the 401k loan repayments, I don't have the cash flow to pay the minimum balances for all of my creditors (the bonus is going to the final bill from my attorney). I've spent the last four years living in my brother's home while trying to pay down the original debt from my divorce in 2008, but now my debt is higher than ever. I don't pay rent or utilities, but I have been paying thousands of dollars on repairs, as home maintenance has been neglected for the past 20 years. Lot's of painting, plumbing, electrical, HVAC, etc. I'm a single dad with two "special needs" children. Insurance has denied a lot of my children's treatment, so I have thousands in medical debt as well. I've been resisting bankruptcy as an option due to the effect it could have on my present and future career. Several months ago, while I was still able to make payments, I committed to going into business with a colleague. I wouldn't have to put up any capital and business expenses would be reimbursed, but cash flow might be unpredictable. My role in the business would be similar to what I am already doing now, but one notch higher, so it's like getting a promotion. There is genuine potential to make a lot of money and maybe pay off my debts. The first 3-6 months might be slow, but I am thinking about working a part-time gig to at least meet my living expenses. Debt will have to take a back seat either way. After leaving my day job I could draw from my retirement savings for the short term (I know most advise against this, but I'm already committed to the business). If the business doesn't show signs of growing or at least bringing in enough profit to stay on top of debt repayments between 6-12 months then I may walk away and take a salaried position elsewhere. In practical terms I think perhaps I should just file bankruptcy now, but since I am receiving "free rent" would this be added to my income under a means test? I definitely make more than the median for a family of three in Texas, but when I took an online means test I just barely qualified for Chapter 7, but this didn't factor in my housing situation. I have no lease or even a verbal house-sitting agreement. I pay for expenses that a landlord could not charge a tenant. Would I be better off renting a cheap place (there are mobile homes in commuting distance)? Or should I dive into my business and see what happens? If I win just a few big projects and can keep it up I can probably pay off my debts, but if I can't bring in enough income, can I file chapter 7 without it considered "fraudulent." My fear is that a bankruptcy judge or trustee might think that I'm running away from my debts and "intentionally" earning a less-than-median income, which would not be the case. I don't see how a chapter 13 plan would work for me under any circumstances since I don't want to be stuck in my present job with my current salary, and I've already committed to joining the business in the next few months. I've worked years in my current position with no promotions and marginal pay raises. 40-50% of my working day is spent doing task that do not match my job description, tasks that are not giving me the skills or experience to develop my career, and I fear it will get even worse in the near future. Five years in a ch. 13 plan would be like indentured servitude and slowly smother my future career prospects and earning potential. I could take another job with a lower starting salary at a better company with better career development options, but again, if I pursue this path I would eventually have to declare bankruptcy, and again, would taking a lower-paying job at this time in my life disqualify me from ch. 7?

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