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While I sympathies with your story and the reason you choose to stay, the fact of the matter is you chose to stay. It wasn't an accident, it was a choice. As soon as your implied status was over, you should have left or at least left the country and came back in as a visitor for 6 months, which you would have been entitled to as you are from a visa exempt country.

Under the circumstances I can't imagine it's a good idea to leave and try and come back. I'd speak to your lawyer to get more advice and follow whatever he is suggesting to you. He likely knows better than we do at this point what is likely to happen.
 
I got this from cic website:
http://www.cic.gc.ca/english/helpcentre/answer.asp?q=474&t=1

"If your work permit expires after you have submitted your application for an extension but before you receive a decision on your application, you can stay in Canada under what’s called implied status. That means the law implies you are a temporary resident. That status lasts until Citizenship and Immigration Canada (CIC) decides on your new permit application. However, you must respect the following requirements: "
 
dizon09 said:
I got this from cic website:
http://www.cic.gc.ca/english/helpcentre/answer.asp?q=474&t=1

"If your work permit expires after you have submitted your application for an extension but before you receive a decision on your application, you can stay in Canada under what's called implied status. That means the law implies you are a temporary resident. That status lasts until Citizenship and Immigration Canada (CIC) decides on your new permit application. However, you must respect the following requirements: "

Yes but only until a decision has been made re work/visitor permit. As the decision was negative, implied status no longer applies.
 
Thank You all for the information and sharing experiences. I am talking to my lawyer this afternoon and I will let you know what we decide. I'm glad to have a place to discuss this with people who understand :)