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After Consumer Proposal

I completed my five years in April 2012. In Nov. 2012 I was granted disability benefits for my daughter and reassessed back 10 years from CRA. They let me keep some of the refund but took $13,000.00 which was the balance after I paid the percentage agreed upon on my proposal. They didn’t return any money to the trustee or give my other creditors a share. I’m very confused and my trustee’s response was that he was sorry they took this money?? I still haven’t received my statement of receipt or the notic e of taxation. I’m not sure what to do next?

Posted from: Ontario

One Response to “After Consumer Proposal”

A licensed trustee said...

It is called the right of set-off. If you owed money to CRA for the years prior to the proposal (and it sounds like you did) they are retro-actively reducing the benefits you would have received in those years. The logic is simple – if you had received them in those years they would have been used to reduce your debt to CRA.

You can’t very well argue that you should get to keep the money if you never would have received it in the first place because of your CRA debts…