FLRM appeal

[Raindance Maggie]

I apologise in advance if this has been asked before, I've searched the forum (and Google) with no luck.

I am a USC married to a UKC. I applied for a fiancee visa a week before the July 9, 2012 rule change went into effect, my visa was granted late September, and I entered the UK in October. I applied for my FLRM a month after we got married, prior to my visa's expiration in March. In May we learned it was refused, the reason given was the July 9 income requirements, which we are exempt from (and it clearly says on both the UKBA website and the actual application form). We sent in the appeal ASAP, but I've never been particularly confident that they will rule in our favor.

Almost all of the information regarding appeals has been for out of country applications. From the info we found we were expecting it to take about a year to get to the hearing, but our date is in September. And I can't find anything about what will happen if the refusal is upheld. How long will it take before a decision is made? If it's upheld, how long do I have to leave? Will I be subject to a ban for overstaying, and if so, how long?

Thanks for any help with my questions, it's greatly appreciated!