09/15/2021
A recent decision of the court has clarified whether or not Employment Insurance (EI) overpayments can be erased by an assignment in bankruptcy or consumer proposal. As a result, we've updated our blog post from 2014 on this topic, and are glad to receive the clarification. That said, the decision does leave individuals in limbo given that their EI overpayments are NOT dischargeable, but that neither Service Canada or any other branch of government seem to seek repayment of these overpayments after an individual successfully completes their bankruptcy or consumer proposal.
Are EI Overpayments erased by bankruptcy or consumer proposals? It's a grey area that needs to be considered when weighing your options. Get the facts.