expired passport/h1b extension

[alex_k]

I am currently residing in USA and in the process of extending my H1B. Passport that I used to enter USA had expired and couldn’t be extended. You might find it difficult to believe but Embassy of my country wouldn’t replace or exchange passport here in USA. I am trying to avoid traveling back home as it will jeopardize my work and family. Is there a problem submitting I-129 and asking for H1B extension with expired passport? Are there any other options available to me?

Any suggestion would be appreciated, thanks Alex