Is there an immigration law that says: "your brother can't file residence for you if you've been living in the U.S illegally for more than a year."
No, but you will be barred from the US for 10 years when you leave the US, and you cannot adjust your status in the US due to you not being in legal status.
J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not constitute legal advice, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship. Answers on Avvo can only be general ones, as specific answers would require knowledge of all the facts. As such, they may or may not apply to the question.
See AFM 23.5(d)(4)(C)(i). Search for "out of status". If you had a visa, you are out of status. If you entered without inspection, you have a whole different bag of issues.
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Your brother can file for you but you will need to leave the country to process. Upon leaving you will be barred for 10 years from returning.
Legal disclaimer: The statement above is general in nature, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship.