Debt Relief Options in Canada

Canadians with unmanageable debt have five main paths: negotiating directly with creditors, a debt management plan through non-profit credit counselling, a consolidation loan, a consumer proposal, or bankruptcy. These guides explain how each works, who it suits and what it costs — sourced from federal law and official agencies.

• Consumer Proposal in Canada: How It Works

  How a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.

• What Is a Licensed Insolvency Trustee?

  What a Licensed Insolvency Trustee does in Canada, how fees are regulated, what to bring to the first meeting and how to check a trustee's licence with the OSB.

• Bankruptcy in Canada: How It Works

  How personal bankruptcy works in Canada: the 9 or 21 month discharge, surplus income, exempt assets, which debts survive and how long it stays on your credit report.

• Debt Consolidation Loans in Canada

  When a debt consolidation loan makes sense in Canada, how it compares with a debt management plan or consumer proposal, and the risks of using home equity.

• CRA Tax Debt and the Requirement to Pay

  What a CRA Requirement to Pay means, how CRA garnishes wages and bank accounts, payment arrangements, taxpayer relief, and how tax debt fits into a proposal or bankruptcy.

• Your Rights When a Collection Agency Calls

  What collection agencies can and can't do in Canada, how to verify a debt, limitation periods by province, and which provincial regulator to complain to.

• Credit Bureau of Canada Collections: Who Is Calling You?

  Credit Bureau of Canada Collections is a trade name of Collectcents Inc., a licensed collection agency — not a credit bureau. How to verify the debt and respond.

Looking for help in your area? See local debt relief pages for cities across Canada, or research a specific lender in the creditor database.