From Injury to Independence: How a Veteran Found Relief from CRA Debt

When Richard left the Canadian Armed Forces after a serious injury, he expected life to finally slow down. He had served his country proudly and was now focused on recovery. Living on long-term disability, he was adjusting to new routines, a fixed income, and the emotional shift that comes with civilian life.

Unfortunately, peace didn’t last long. A letter from the government arrived claiming he owed $30,000, and suddenly Richard was facing a financial crisis that would test everything he’d worked for.

But, one that would eventually lead to a consumer proposal success story that gave him his life back.

Behind the Uniform: Life After Military Service

Life in the military had always been structured. Every day had purpose and order. But when Richard’s injury forced him into medical discharge, that structure disappeared overnight.

He was receiving Veterans Affairs and military pensions, but he had never been told how the taxes worked. Like many on fixed incomes, he assumed everything was already being deducted. With his focus on healing and adjusting, taxes became the last thing on his mind.

Years passed before he caught up on his returns — and that’s when the $30,000 CRA bill appeared.

The Shock of a $30K Tax Bill

The letter from the CRA hit him like a wave. Not only did they demand repayment, but they also threatened to take it straight from his pension. For someone living on disability, that kind of loss would have been devastating.

Richard felt cornered. He’d served his country, done his best to rebuild his life, and now he was facing a new kind of fight — one he didn’t know how to win. Each day brought new calls and letters from the CRA, each one heavier than the last.

The Turning Point: A Call for Help

After weeks of stress, Richard decided to look for help. That’s when he connected with Zach Barkauskas, a Debt Solutions Manager at Farber who works with veterans and people living on fixed incomes.

Richard shared his story, including his service, his injury, and the fear that he was about to lose the little stability he had. Zach listened and explained his options clearly. Together, they explored something Richard had never heard of before: a consumer proposal.

It would immediately stop the CRA from touching his pensions, prevent interest and penalties from continuing to accrue, and replace the CRA’s $1,400-a-month demand with one affordable monthly payment.

From $1,400 to $1,075: Regaining Control

When the CRA said they’d accept $1,075 a month under the consumer proposal, Richard could hardly believe it. For the first time in months, he wasn’t losing ground — he was gaining it.

“I can finally breathe again,” he told Zach after the agreement went through. And he meant it. The proposal didn’t just protect his income, it gave him back a sense of control.

Breathing Room and a Fresh Start

With that weight lifted, Richard began to rebuild. He started budgeting, paying attention to his spending, and thinking about the future again. He could finally sleep through the night without worrying about what tomorrow might bring.

More than anything, he felt like himself again. The fog of stress and shame that had followed him for months began to lift.

“I’m not looking for a handout,” he told Zach. “I just want to make things right.”

Life Today: Steady, Safe, and Moving Forward

Today, just like others who’ve used a consumer proposal, Richard’s life is stable again. His CRA debt is under control, his pensions are protected, and he’s sticking to his plan with confidence. He knows exactly what he owes and when he’ll be debt-free — and that simple knowledge has changed everything.

He’s reconnected with his family, started enjoying small routines again, and found new peace in knowing he’s finally on the right path. What once felt impossible now feels manageable.

For Richard, this wasn’t just about debt relief. It was about his dignity and getting the chance to move forward with pride.

A Veteran’s Story, A Shared Mission

For Zach, this was more than just another file.

“What made this story meaningful was watching him go from powerless to empowered,” he said. “We don’t just help with debt — we help people rebuild.”

Richard’s experience is a reminder that a consumer proposal success story isn’t just about numbers. It’s about people finding hope again after feeling stuck.

Need Help Like This? You’re Not Alone

If you’re facing CRA debt or worried about pension garnishment, you’re not alone. Like Richard, you can find real debt help in Canada that fits your situation and protects your income.

At Farber Debt Solutions, our Licensed Insolvency Trustees are here to listen, explain your options, and help you move toward a fresh start, whether it’s reducing debt through a consumer proposal or exploring other debt relief options.

You’ve already handled tough battles. Let us help you win this one too.

Start your journey toward peace of mind today and book a free consultation today.

Zach Barkauskas is a dedicated Debt Solutions Manager who brings both education and hands-on insolvency experience to every client interaction. With a Business Administration Diploma from SAIT Polytech and five years in the industry, Zach combines practical knowledge with a genuine passion for helping people regain financial stability.

Known for his approachable style and judgment-free guidance, Zach takes pride in seeing the relief on clients’ faces when they realize that financial recovery is possible. He believes everyone deserves a fresh start and works hard to provide clear strategies and resources that empower clients to make confident financial decisions.

Real Stories from People Who’ve Been There

Many Canadians have found a way forward through a consumer proposal.

Andre’s story: When Andre’s wife unexpectedly lost her job, he suddenly became the sole provider for their family. What started as a temporary situation quickly became overwhelming. Bills piled up, credit card balances grew, and their financial stability began to unravel. Feeling the weight of constant stress and growing debt, Andre reached out for help. Through a consumer proposal, he was able to reduce his monthly payments and stop the collection calls. It gave his family room to breathe—and a chance to rebuild their lives without fear.

Lisa’s story: Lisa, a full-time caregiver in Ontario, spent her days supporting others—but behind the scenes, she was barely staying afloat. Juggling household bills, caregiving duties, and over $75,000 in debt left her exhausted and anxious about the future. She knew something had to change. A consumer proposal helped her lower her debt to a manageable level and freeze the interest. For the first time in years, Lisa could focus on her family and her own well-being—without debt dictating every decision.

Delores’s story: Delores, a working mom in Ontario, was facing over $230,000 in debt, legal action, and the emotional toll of doing it all alone. After a business was registered in her name without consent, she found herself responsible for massive liabilities and constant creditor calls. With two kids to support and no clear way out, Delores felt trapped. A consumer proposal helped her stop the lawsuits, avoid wage garnishment, and regain control with a manageable monthly payment. For the first time in months, she could breathe again—and start building a future with hope.

Omar’s story: In his twenties, Omar was buried under $35,000 in credit card debt, with monthly payments nearing $700. The stress became unbearable, forcing him onto sick leave and isolating him from friends and family. He felt stuck—until his mother reached out to Farber. With the help of Carol, a compassionate Debt Solutions Manager, Omar filed a consumer proposal that lowered his payments to $225 and stopped the collection calls. For the first time in months, he could breathe.

Susan’s story: In her early fifties, Susan was drowning under $60,000 in high‑interest debt, with minimum payments close to $1,800 each month. The strain weighed on her marriage, her health, and her peace of mind. Collection calls became constant, and she felt trapped with no way forward. That changed when she connected with Erika Watson at Farber. With Erika’s guidance, Susan filed a consumer proposal that reduced her payments to $650 and stopped the relentless calls. For the first time in years, she could breathe, focus on her family, and rebuild her life with confidence.