DS160 for expired I94 valid H4 visa

[maccounts]

My wife's I94 expired in Oct 2014 and fortunately we figured out on the 175th day after expiry. I consulted with two attorneys. One of them tried with CBP and initially CBP said that they fixed the problem as the H4 & I797A was valid. But when the system didn't showed the updated date, our attorney consulted again and they mentioned that they are not able to update the system due to some technical limitations because of the first attempt to update. Attorney said that she should leave now to avoid 3 year ban and therefore she left before hitting 180 days.

 

* Has anyone faced the problem like this earlier.

* Attorney said that in the part that we should fill in DS160 that there was an accidental overstay.

* Also they said, to be truthful at all times instead of trying to justify and clearly accept the mistake which makes sense to me. Does this raise the probability for denial?

* Does overstay means that high probability of denial of visa at consulate or I94 at point of entry.

* I have approved PERM. Will this strongly affect it in negative way.

 

 

Please help. I'm filling up DS160 and really confused. Looking at the other post in forums, it seems that most people went lucky with just crossing the border while we are taking the best legal route to rectify the problem which is going to be well documented.

 

Any suggestions if anything need to be done differently.