CERB Repayment: What You Need to Know about It
If you are a Canadian citizen and you have received the so-called CERB assistance, you may now have to deal with CERB repayment. CERB or Canada Emergency Response Benefit was a financial help provided by the government to help those during the pandemic, especially those who couldn’t work. The problem with the assistance was the filtering and sorting out processing. Requirements weren’t completed properly and yet thousands had applied. They didn’t really whether they were eligible or not.
If you are one of those getting CERB notice, hang on. Things may not be easy, especially with inflation and stuff, but once you sort things out, you can clear your mind out and not having to deal with the overwhelming stress. It’s true that repaying this kind of debt isn’t easy, but you can look into your finance and start sorting things out slowly.
During the pandemic, the Canadian government provided $2,000 a month for their citizens who couldn’t work while being in the lockdown. The program went so fast because of the situation without people really understood what they were getting into. A lot of people didn’t meet the eligibility, and yet, they were able to collect payments – although they weren’t eligible to do so. Some even got multiple payments because of the mistake within the system.
How to Repay It?
The government now demanded that those who got the help to fully repay the $2,000 overpayment, especially during the months where they weren’t actually considered eligible for it. The overpayment can be repaid in full or within a certain period of time. It’s a good thing that CRA (Canada Revenue Agency) doesn’t charge any interest on it, and they are willing to lend you a hand in creating a repayment plan. The repayment itself can be made by mail, in person directly, or through CRA online.
The Consequences
What would
happen to you when you don’t repay that CERB?
- You may deal with bank accounts hold on or seizure
- There is a possibility of wage garnishment
- You will have a lien registered against your assets
- You will experience your tax benefits being allocated toward your debt
- It’s possible that your assets or home being seized
Bottom Line
If you are struggling to pay it back or you feel that you can’t pay it back, you need to contact CRA immediately so they can figure out a plan. You can consider entering a Consumer Proposal or even filing for bankruptcy to have it written off.
Be sure to reach out to CRA. Don’t hide or do something shady to avoid repaying it. They can help with your CERB repayment as long as you can show them good faith and be honest about your situation.
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