5. Learn about your other options
Question & Answer
The CRA says I must pay back the COVID-19 benefit. What can I do?There are some other options if you cannot afford any type of payment arrangement with the (CRA).
Make sure you fully understand what happens if you choose one of these options. Find out what you must do and what happens if you do not do that. For example, how it will affect your and for how long?
A Licensed Insolvency Trustee can explain your options and answer your questions.
Consumer proposal
A consumer proposal is an agreement you make with your creditor to solve your debt problem. A creditor is someone you owe money to. If you have to pay back your COVID-19 benefit, the CRA is your creditor.
You can ask your creditors to:
- give you more time to pay back the debt
- reduce the amount of your payments
- stop charging interest on your debt
- agree to accept a lower amount than the total that you owe
If your creditors agree to your consumer proposal, they must:
- stop taking money from your wages, and
- stop any lawsuits they have against you.
You can make a consumer proposal only if you owe less than $250,000 to all of your creditors.
And you can only make a consumer proposal for an , like money you owe the CRA for the COVID-19 benefit. Read more in Can a consumer proposal help me get out of debt?
Bankruptcy
When you file for bankruptcy, most of your debts are discharged. This means that you do not have to pay them back. It includes money you owe the CRA for the COVID-19 benefit.
And your creditors cannot take money from your wages and must stop any lawsuits they have against you.
Read more in I am having money problems. Should I file for bankruptcy?
