If you are in need of support when it comes to making your CERB repayments, you are certainly not alone. If you are struggling with unexpected CERB repayment bills and are concerned about the actions the CRA could take against you, you will be relieved to know that thankfully there is support available for you. There are CERB relief programs available to all Canadians to help you clear your CERB for good. Want to talk to someone about your options?
On this page, we share how you can gain relief from your CERB repayments, and the available solutions for when you receive a notice of redetermination and simply cannot make your CERB payments to the CRA. We know exactly how stressful and worrying it can be when you face unaffordable repayments and are receiving relentless collection calls. No matter how bad you think your financial situation may be, there is always a debt relief solution for you. At Spergel, we have helped over 100,000 Canadians gain debt relief – each with their own financial difficulties, including struggling to make their CERB repayments. Our experienced Licensed Insolvency Trustees will begin by assessing your financial circumstances and recommend a route to reducing your CERB repayments or eliminating them altogether to allow you to begin a fresh financial future. We also understand how stressful the prospect of facing consequences from the CRA can be, and we can work to quickly generate a stay of proceedings to offer protection from them and stop any legal action including bank account freezes.
Book a free, no-obligation consultation with a Licensed Insolvency Trustee at Spergel today. Our Licensed Insolvency Trustees have been relieving Canadians of their debts for over thirty years.
CERB repayment relief programs are available in Canada
If you cannot make your CERB repayments and do not know what to do next, rest assured it is possible to reduce or eliminate your CERB repayments completely thanks to the available CERB repayment relief programs in Canada. For many Canadians, receiving COVID-19 benefits in error was never their plan, let alone unexpectedly having to pay them back. Due to the speed with which the CRA rolled out CERB (or the Canada Emergency Response Benefit), some Canadians received the benefit in error, others received double payments, and some were ineligible entirely. To rectify the situation, CERB repayment requests have come about in order to reclaim the money that was distributed incorrectly. While we know this process can feel worrying and complex, here are some of the best ways to seek support with your CERB repayments:
Filing a consumer proposal
As the Office of the Superintendent of Bankruptcy recently confirmed that CERB is a releasable debt in insolvency, it is now possible to write off CERB repayments, as well as any other debts you may have. Filing a consumer proposal is the process of working with a Licensed Insolvency Trustee to put forward an affordable amount you can manageably repay your creditors each month. If accepted, all your other debts will be cleared, and you just need to stick to making your affordable payment for a maximum period of five years. It is a great way to reduce your debts by up to 80%, including CERB payments. At Spergel, we have a 99% acceptance rate on any consumer proposals we file. Consumer proposals are a popular bankruptcy alternative, and have a number of other advantages. These include the ability to keep your home and car, and they offer protection from your creditors and put a stop to collection calls.
Filing bankruptcy
Filing bankruptcy in Canada is the easiest way to gain a fresh financial future. Bankruptcy is the process of assigning any non-exempt assets you may have to your Licensed Insolvency Trustee in exchange for the clearance of your unsecured debts, including CERB repayment. The proceeds of selling your assets will go towards the repayment of your debts, although contrary to popular belief, filing bankruptcy does not leave you with nothing. As it is intended to give you a fresh start, taking away all you own would be counterproductive, so each province enables you to keep some assets including a vehicle and your home to a certain limit. See, for example, Ontario bankruptcy exemptions. Bankruptcy can provide CERB repayment forgiveness, and free you of the stresses of overwhelming debt. This can be especially helpful when you were sent CERB unexpectedly, and had no idea you would need to pay it back to the CRA. Most Canadians filing bankruptcy for the first time are discharged within nine months. At Spergel, our experienced Licensed Insolvency Trustees have been helping Canadians to file bankruptcy and gain a fresh financial future for over thirty years.
Taking out a debt consolidation loan
In some scenarios, a debt consolidation loan may work for you. If you are juggling trying to make CERB repayments while struggling with various other unmanageable debts, a debt consolidation loan could simplify your situation. It is a new loan that is taken out to condense all your other loans into one. This has the advantages of simplifying your debts into one straightforward payment, and often leads to a reduction or elimination of your interest rates. The downside is that it will not reduce your CERB repayment, just simplify it. You will still need to pay the full amount owed overall.
Arranging a repayment plan
Communication with the CRA is one of the most important steps when you realize you are struggling to make your CERB repayment. The CRA will try to help you by collaborating on a repayment plan, although once again the amount you owe will not be reduced. They can help to make your payments more manageable, and are sometimes willing to extend the period over which your payments are due. Do be wary that the CRA will prioritize debts owed to them over any other financial troubles you may have. They may try to push you into a repayment plan that is unmanageable for you, which can lead to other problems. For this reason, it is a good idea to speak to an impartial Licensed Insolvency Trustee who can review your financial circumstances and advise you on your options.
What happens if you do not make your CERB repayments?
If you do not make your CERB repayments for whichever reason, the CRA can – and will – exercise consequences. It has unrivalled powers compared to other creditors, and consequences can include the following:
- Pursuing a wage garnishment against you so your payroll is deducted at source
- Freezing your bank account so you cannot access your funds
- Putting tax benefits including tax refunds and credits towards your CERB debt instead
For these reasons, you should work to settle your CERB repayments as quickly as you can to avoid getting in further hot water.
Reach out to Spergel regarding CERB repayment relief
Although CERB repayment can seem extremely stressful – particularly if you are handling other debts – it is simpler to resolve than you might think. You might well be wondering how on earth you can repay the CRA while trying to pay your other bills. It is all too easy to bury your head in the sand and hope the problem will go away. Yet reaching out to an experienced Licensed Insolvency Trustee is the first step you can take. We approach all our clients with compassion and understanding, and are ultimately here to help. We will begin by reviewing your financial circumstances and advising the best pathway for you. This may mean you reduce or eliminate your CERB repayments completely, put an end to CRA calls, and begin a fresh financial future.
Book a free consultation today to see how Spergel can help you to gain CERB repayment relief in Canada and get out of debt sooner. Reach out today – you owe it to yourself.
