Resolving Overwhelming CERB Debt — John’s Story

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John found himself facing a daunting financial burden when the Canada Revenue Agency (CRA) informed him that he owed $26,000 in CERB repayments. During the pandemic, John accepted CERB payments, believing he was fully entitled to the funds. However, after the money was spent on essential living expenses, the CRA notified him that he had received the funds in error and was now required to repay the entire amount.

In addition to this unexpected CERB debt, John had accumulated $20,000 in credit card debt, which made it impossible for him to repay the large sum demanded by the CRA. Overwhelmed and unsure of how to move forward, John met with a Licensed Insolvency Trustee (LIT) to explore his debt relief options.

The Trustee carefully reviewed John’s financial situation and explained the different avenues available to him. After weighing his options, John decided that a consumer proposal was the best solution. This would allow him to consolidate his debts—including both the CERB repayment and his credit card debt—into one manageable payment plan.

The Trustee negotiated with the CRA and John’s other creditors to secure a proposal that fit comfortably within his budget. In the end, they were able to settle John’s total debt with a fixed, interest-free payment plan of $200 per month for 60 months. This solution provided John with the relief he desperately needed, enabling him to pay off both his CERB and credit card debts without the pressure of accumulating interest or overwhelming monthly payments.

Thanks to the consumer proposal, John can now move forward with a clear path to financial stability.

If you’re struggling with CERB debt or other financial challenges, book a free consultation with a Licensed Insolvency Trustee to explore your options.