I strongly recommend a personal consultation with an experienced attorney!
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If your wife entered legally, ans still has her I-94, she may not need a waiver.
Meet with an attorney for confirmation.
PROFESSOR OF IMMIGRATION LAW for over 10 years -- This blog posting is offered for informational purposes only. It does not constitute an attorney-client relationship. Also, keep in mind that this is an INTERNET BLOG. You should not rely on anything you read here to make decisions which impact on your life. Meet with an attorney, via Skype, or in person, to obtain competent personal and professional guidance.
I agree with attorney Vaisman. To clarify, you only need to leave the country to file a waiver in certain situations. In others, you do not. This is why it is so important that you reach out to immigration attorneys in VA and clarify this issue.
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It's more complicated than just filing a form. If you are applying for a 601 waiver without an attorney, there is a strong chance it will be denied. In addition it sounds like you may not even need a waiver.
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.
If your wife entered the U.S. with admission (for example on a Visa or with a Paroled Stamp), and she has not left the U.S. since then, and is married to you, then your wife can likely get her green card in the U.S. under INA 245(a). She does not need a 601A waiver for unlawful presence because your wife is not going to leave the U.S. to obtain her green card. The 601A waiver is only to waive unlawful presence only if she leaves the U.S. You file the petitions with the USCIS. No court is involved. I highly recommend that you hire an attorney who can take you and your wife through this process. Most green card applications take 6 months to 1 year. Additionally, there is a great myth that you have to have medical issues to have a waiver approved. That is simply not true. The US government approves approximately 65% of waivers, and often times, everyone is healthy.
This advise does not create an attorney-client relationship.
Normally if the spouse of a U.S.C. entered legally, did not leave and re-enter the U.S., commit fraud, or commit a crime they do not need a waiver. Of course, each case is different, which is why it is extremely important to consult an attorney. If she was put in immigration proceedings and ordered deported/removed, you will need to discuss options such as requesting a stay of removal, filing the I-130, seeking a joint motion to reopen.... Also, if she DOES need a 601 waiver, an attorney can help you think through the sources of hardship and assess the likelihood of success. I have obtained waivers for couples without children and without serious health issues, but those cases definitely need to be well prepared to succeed.
This general information does not establish any attorney-client relationship. There may well be factors not mentioned in the question which could and should be addressed in an attorney consultation.