at the moment have 5 years residence permit (im Non EEA married to EEA),been working for the last 5 years in Uk , my permit expire March next year, have a child ,another one due in january ,not bad

ok, i have the right to apply for ILR , have all the documents needed ( still sounds good) , BUT wife claimed benifit! i know thats suks! (sorry for the word), NOW the question is , whats the worst could happened ?
i know my application will be jeopardise but whats will happened if its refused! specialy when my residence permit will expire March next year!
help needed and apreciated....thank you