Thank you for your reply.
As neither you or your wife or child have any valid leave to remain in the UK, it will be very difficult to legalise your current status.
However, if you believe that you have build sufficient private life in the UK as an individual or as a family then you may submit an application outside of the immigration rules on a discretionary basis. Using form flr (o) the following form:
Any application submitted on the above basis must be done before 9th July 2012 as after this date any application submitted outside of the rules on a discretionary basis on Human Rights grounds is likely to be refused or dealt with very strictly.
Being mindful if the above, I must inform you that as overstayers you are breaching the immigration rules and thus committing a criminal offence by overstayer, you should if return to our home country and submit an application for entry clearance if you feel you do not have any grounds to submit an application on discretionary/human rights basis.
I hope this answers your question, if so please leave positive feedback so I can get credited for my time.