So you are presently unlawfully in the U.S.? Are you the subject of removal proceedings? Was the prior incident classified as a removal, prior to your reentry with your family?
As your lawyer no doubt told you, overstay for more than a year makes you subject to a ten year bar (presumably the ten years you are talking about) and lying about being a U.S. citizen can result in lifetime ineligibility to reenter. Are you stating that your lawyer advised you to wait out your ten year bar from the overstay, then to petition for relief from your continuing bar due to your misrepresentation about your citizenship?
Your lawyer, quite obviously, knows a lot more about your case than we do and is thus in a far better position to analyze your options.

