The CRA Is Powerful — But You’re Not Powerless: What to Do If You Can’t Afford to Pay the CRA
It starts with a letter. Then another. Then a call you weren’t expecting. Suddenly, your heart pounds every time the phone rings. If you owe the Canada Revenue Agency (CRA) money and can’t afford to pay it, you’re not alone — and you’re not out of options, either.
Right now, especially with tax deadlines looming, thousands of Albertans are feeling the exact same gut punch of realizing: I can’t pay what I owe. Maybe you tried to set up a payment plan with CRA — but the payments they want are way too high. Maybe you’ve been chipping away at it, but interest and penalties keep adding up faster than you can manage.
Here’s the part that nobody tells you clearly enough: If you do nothing, CRA can — and will — garnish your wages or freeze your bank account. But if you act quickly, you have one very powerful option to legally stop them… without declaring bankruptcy.
Let’s talk about it.
The CRA Doesn’t Wait — And Neither Should You
When you owe tax debt to the CRA, they have incredible powers to collect:
- Garnish your wages (take money directly from your employer before you even get paid).
- Freeze your bank accounts without a court order.
- Seize your assets like rental income, investment accounts, or even your home.
And here’s the hard truth: Unlike regular creditors, the CRA doesn’t have to wait in line. They can move quickly and aggressively.
If you’re trying to make CRA payments but can’t afford the amounts they demand, that’s not a you problem — it’s an everybody problem. You’re not the only one who can’t afford the payment plans. Most people simply can’t keep up with CRA payment plans because they’re based on what you owe, not what you can realistically pay while covering your living expenses.
What Happens If You Can’t Afford the CRA’s Payment Plan?
Short answer: They escalate.
If you miss payments or default on a CRA payment arrangement, they don’t mess around. Here’s what happens:
- CRA collections officers can immediately seize your bank funds.
- They can issue a Requirement to Pay to your employer or clients (even if you’re self-employed).
- Interest compounds daily, making your debt grow even faster.
This is not like missing a credit card payment. CRA can, and will, act without waiting for your permission.
You don’t need to panic — but you do need to act.
Your Options If You Can’t Afford to Pay the CRA
You might be wondering, “What can I actually do to protect myself?”
You essentially have three legal options in Alberta:
1. Consumer Proposal through a Licensed Insolvency Trustee (LIT)
A Consumer Proposal is a formal, legally binding agreement where you offer to repay a portion of what you owe over time. It can stop CRA collection actions once filed, but it often involves negotiating lump-sum payments or tight monthly amounts, and it will have a lasting impact on your credit. It’s an important option for some — but it’s worth knowing there may be alternatives with more flexibility and predictability.
2. Bankruptcy through an LIT
This clears many debts, including tax debts, but comes with serious consequences:
- You could lose assets like your home or vehicle, depending on your situation.
- It severely affects your credit rating.
- Rebuilding your financial future after bankruptcy can take years. Bankruptcy should be a last resort — but know it exists if absolutely necessary.
3. Orderly Payment of Debts (OPD) Program through Money Mentors.
The OPD program is the only government-approved, court-protected alternative outside of bankruptcy or a consumer proposal that stops CRA from garnishing your wages or freezing your bank account. With OPD, you don’t have to negotiate a settlement or hand over lump sums. Instead, you repay your full debt — including CRA amounts — at a fixed 5% interest rate, through one easy monthly payment you can actually afford. Best of all? It offers predictability, creditor protection, and financial education every step of the way — without the lasting consequences of bankruptcy or the complexities of negotiating settlements.
Let’s be real: Bankruptcy isn’t something anyone wants to do if they can avoid it. And consumer proposals often still have hefty monthly payments that feel just as overwhelming.
That’s why if you’re employed and have a stable income, the Orderly Payment of Debts (OPD) program could be the lifeline you’re looking for.
Why the Orderly Payment of Debts (OPD) Program Is a Game-Changer
The OPD program is not some random debt relief gimmick — it’s federally legislated and available exclusively through Money Mentors in Alberta.
Here’s what OPD can do for you:
- Lower your interest rate to just 5% — dramatically reducing what you pay over time.
- Consolidate all your debts (CRA included!) into one affordable monthly payment.
- Legally protect you from CRA’s collection actions.
- Stop wage garnishments, bank account freezes, and scary letters — immediately after the court approves your plan.
- Help you pay off 100% of your debts in 5 years or less, without losing your assets.
It’s not bankruptcy. It’s not a consumer proposal. It’s a true repayment plan backed by the courts and the Government of Alberta, with no judgment and full protection from creditor harassment.
What It Actually Feels Like to Be on the OPD Program
Imagine this:
You open your mailbox — no more threatening CRA letters.
You check your pay stub — no mystery deductions.
You log into your bank account — your money is all there.
You make one simple monthly payment — that’s it.
Relief. Predictability. Hope.
That’s what OPD clients say they feel for the first time in months — sometimes years. Instead of getting deeper into the hole, they finally start climbing out.
Who Qualifies for OPD?
The OPD program is meant for Albertans who:
- Have a stable source of income.
- Are carrying high-interest debt (including tax debt) that they cannot realistically pay on their own.
- Want to avoid bankruptcy but stop the CRA collection nightmare.
It’s not about being perfect. It’s about being willing to take that first step toward breathing room, dignity, and a real plan.
When CRA Comes Knocking, Don’t Answer Alone
If you owe the CRA and can’t afford their payment demands, you deserve to know your rights.
The Orderly Payment of Debts program through Money Mentors is the only court-approved, government-backed solution outside of working with a bankruptcy trustee — and it could be exactly what you need.
✨ Chat with a Money Mentors Counsellor today — no pressure, just real help and clear answers.
Because the CRA doesn’t wait — but neither should you.
Let’s build a plan that works for you, not against you.
