You should not cut your losses. You can file a claim in a municipal court for your municipality, which typically has a cut-off of $15,000. .
I have to concur with Mr. Webber. Even if the record was sealed, it still had to be disclosed, and failure to do so will probably result in a denial of any attempt to appeal.
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Your husband's deployment, in and of itself, does not make you eligible for U.S. citizenship. Citizenship is usually available to spouses, children or parents of a U.S. citizen military personnel who have died while on active duty. However, you are eligible to apply for naturalization 3 years after you have acquired your permanent residence if you remain married. If your husband is a U.S. citizen, I assume you are probably already a permanent resident. If your husband is not a U.S. citizen,...