AW, you have probably surmised that nearly everyone is denied the first time, no matter the merits of their case. Sad and stupid but true. My dad was in terrible shape when he first applied (had had a heart attack, cancer and hadn't been ambulatory for nearly a year) and was denied. For whatever stupid reason the 'system' seems to work by discouraging as many as possible.
If your case is a strong one (and it sounds like it is as you present it) then you should eventually get it sorted out. I hope your lawyer can grease the skids a bit.
Best of luck! Stay strong in your sobriety and hang in there as best you can.