HUNTSVILLE, ONT. -- Lending money is tricky at the best of times. During a pandemic, the tension is heightened.

I've witnessed family members debating how to continue to bail out other family members without compromising their financial future.

Some have worked so hard to get by, but let's face it: others have not.

The pandemic has masked the severity of those struggling financially, due in part to government support measures, absence of the typical insolvency triggers, interest-free loans, creditor flexibility and even provincial grants. In an ironic sort of way, insolvency filings hit a 20-year low in 2020 as all this pandemic aid cushioned the financial blows at least temporarily.

Things are starting to change.

According to the Canadian Association of Insolvency and Restructuring Professionals, "after a very long pause, we are starting to see individuals with judgements obtained against them as creditors attempt to catch them up on their payments."

The pandemic has prolonged, not eliminated, the distress for those who were previously on the verge of financial ruin.

The rhetoric has ramped up. Should the government forgive CERB overpayments? Will there be compassionate support for families impacted by COVID-19? What about student loans, small business debt and mortgage and rent relief?

These are not easy questions to answer, and debate is raging as a day of reckoning is rapidly approaching for many families and small business owners.

But today we have a little good news, and financial relief for some. The government just announced that self-employed individuals who applied for the Canada Emergency Response Benefit and who would have qualified for the program based on their gross income of $5,000, will not be required to repay the benefit when their net income fell below that amount.

There was a lot of confusion here, amid miscommunication and frustration about the repayment. This announcement will alleviate some of the financial pain for those who thought they qualified, only to find out later they did not.

Plus, for those who are self-employed with net income below $5,000 and have already voluntarily repaid the CERB, CRA and Service Canada will return the repaid amount.

And the news gets a little better. 

Government benefits in the various plans were always considered to be taxable benefits that many chose to overlook simply because they weren't in a position to deal with tucking away money for taxes.

However, by not paying the taxes in April, the corresponding impact would be an interest charge on the unpaid taxes. Announced today is that once you have filed your taxes for 2020 and benefit return, you will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022. To qualify, you must have a total taxable income or $75,000 or less. 

There is hope that additional relief will be on the way, but for now those who need it are being given a little financial wiggle room. This helps start to answer the question 'Should debt be forgiven?' For some, it appears the answer is yes.