8th year Extension under RFE and most likely will be denied/options for me?

[Lecoq]

I am currently on an 7th year H1B extension with my school employer (Valid until August 2012) An 8th year extension has been filed back to July 2012 for an 8th year extension. My attorney has gotten an RFE regarding the 8th year extension we have to respond by February 22.

CIS is requesting evidence of an I-140 petition or new labor certification. I have neither.

My 7th year H1B extension has been approved apparently based on a previously approved labor certification (from my former employer who did not proceed with signing the I-140). The fact is by the time my attorney filed my 7th year extension, my previous labor certification has died. And yet, I have been granted a 7th year extension!!!!

Nevertheless, according to my attorney, they will respond to the RFE very near to the deadline but most likely, it will be denied. His startegy is to proceed as planned with my actual employer with advertisement and recruitment process (Perm process) and to complete a new labor certification as soon as possible and to file an I-140 petition filed.

At the same time since there is no appeal for extension, my attorney plan to seek a writ of habeas corpus in federal court and ask a judge to rule in our favor. That CIS is in violation of the APA (Administrative Procedures Act)

I do not know ifit's going to work and the judge will rule in our favor. Not to mention the financial burding of all these processes.

It's a race against the time for me as my extension most likely will be denied around April 1st, 2013 by CIS and I will be out of status then from there in 180 days to leave USA. Could I use here in addition of the 180 days, the 240 days rule saying when an H1-B petition and extension of stay is timely filed, during the pendency of adjudication, the 240 days rule kicks in ( I can keep working for my employer) ?

I doubt also that I will have an approved labor certification and I-140 approved before being out of status. The I-140 could be filed as premium process but how about the labor certification? It might take time to get it certified not to mention an eventual Audit.

What are my options? I do not want to leave the country and stay one year in my country and to re-enter USA with a new 6 year terms H1B even though my employer is opened to this possibility.

My wife is under F1-status and is going to school here. Could I with my school employer transfer status from H1B to F2 as dependant of my wife before being out of status and then to re-transfer from F2 to H1B without leaving the country and to return to teaching and working with a very short delay? What is the process?

How would it impact my labor certification process and road to green card processing right now with my employer?

I am just trying to anticipate down the road and to prepare my options in worth case scenaris for me.

Any help and advices will be greatly appreciated as time is running against me.