Consumer Proposal Stay of Proceedings
I filed a consumer proposal to a Licensed Insolvency Trustee on June 29, 2007. On August 14, 2007 the Licensed Insolvency Trustee informed me that the proposal was deemed accepted by my unsecured creditors since the 45 day period had expired. This consumer proposal is for a period of five years. On August 16, 2007 I received a letter from Human Resource Development Canada dated August 10, 2007 which indicated that I had committed civil fraud for failing to report receipt of vacation pay from my employer in 2006. My intention is to appeal this ruling. However, if I lose my appeal, I would like to know if Revenue Canada can make an application to court to have the stay of proceedings lifted and force me to repay the money owing to them? Is my stay of proceedings effective for the entire five year period of the proposal? According to the Employment Insurance Act, Revenue Canada has a time limit of six years in which to collect this debt. In my case, if the stay of proceedings bars any legal actions against me for the five years of the proposal, does this mean that Revenue Canada has only one year from the expiration of the proposal to collect this debt? If I refuse to repay this debt, what assets can Revenue Canada seize from me to satisfy their claim? I have lived in Edmonton, Alberta for the last 35 years.
If you loose your appeal it is always possible for CRA (Rev Can) to request the stay be lifted, however it will remain up to the courts whether or not they will do so.
In terms of the statute of limitations, the period of time your debts are stayed is not included. As for the actions creditors can take it is essentially garnishment of wages or seizure of bank accounts, but if you own any real property they can place a lien on that property that essentially acts as a second mortgage.