470 reviews
250 Consumers Road Suite 810 Toronto, ON M2J4V6
Do you have any questions about addressing your financial status or challenges? Check out our FAQs and set up a free consultation with our team member to get specific answers.

Consumer Proposal

What is a consumer proposal?

A consumer proposal is a formal, legally binding process between you and your creditors to offer a payment percentage of what you owe based on income and assets.

Can I get a credit card while in a consumer proposal?

You won’t be able to apply for an unsecured credit card while you’re making payments in your proposal, but you will be able to apply for a secured credit card or a prepaid one.

How long does a consumer proposal stay on your credit?

3 years after the last day of payment on the fulfillment of the Consumer Proposal. As stated by Equifax, “A consumer proposal will be removed from your Equifax credit report 3 years after you’ve paid off all the debts according to the proposal, or 6 years from the date it was filed, whichever comes first.”

What happens if I miss my proposal payment?

If you miss a proposal payment you can always make it up within the term, but if 3 payments are missed within the term then you become annulled. If you’re annulled, you have a month from the first day of annulment to revive your proposal by making up the payments missed all at once.

What kind of debts are covered in a consumer proposal?

  • All unsecured credit cards,
  • CRA debt,
  • lines of credit,
  • student loans,
  • cash stores loans,
  • department store cards,
  • phone bills,
  • utility bills,
  • shortfall owing on assets that have been repossessed (example; vehicle, house)


What happens to a debt that is co-signed if I file bankruptcy?

Bankruptcy eliminates your obligation to pay the creditor, but the co-signer will still be responsible for any co-signed debt.

Can I travel outside the country while in bankruptcy?

YES. There is no legal restriction preventing you from traveling outside the country while in bankruptcy. However, there are some situations where you are required to be physically present in order to obtain your discharge. If you are unable to attend in person, there may be a delay in getting your discharge from bankruptcy.

What will happen to my house when filing for bankruptcy?

If there is a huge amount of equity in your house, you cannot keep it when filing for bankruptcy. However, if it has very little or no equity at all, making arrangements with a mortgage company to continue paying the mortgage is also feasible. Doing so will let you keep the house post-filing for bankruptcy. On the other hand, if the house has considerable equity, it is your trustee who will decide whether the house should be seized and sold, or other arrangements need to be made (for repaying the equity). Other arrangements include borrowing from relatives, friends, or colleagues. You can even opt for a second mortgage.

In Canada, How long does bankruptcy last?

There are a few variations to this. If your income is more than the minimum limit set out by the Canadian government, there are chances of your bankruptcy being extended longer than nine months. Also, if this isn’t the first time you’re filing for bankruptcy, the duration will be longer than 9 months. Lastly, if you failed to fulfill one or more of your obligations under bankruptcy, expect delays in your discharge.

Does filing for bankruptcy affect my spouse?

In Canada, filing for bankruptcy has no impact on the spouse. The debts solely belong to the person filing for bankruptcy and hence, only he/she holds complete responsibility. Similarly, if you file for bankruptcy, only your debts will be discharged. The spouse or common-law partner is not responsible for the debts. However, there are exceptions if your spouse has co-guaranteed your debt.

If I go bankrupt, what can I keep?

Also referred to as bankruptcy exemptions, the Canadian government exempts certain assets to facilitate a fresh financial start for individuals. Some of the most crucial exemptions include limited amounts of:

  • Health aids,
  • Clothing,
  • Furniture,
  • Car (under certain cases),
  • House (under certain cases),
  • Tools of trade,
  • Pensions,
  • Farm land, animals, etc.

When filing bankruptcy, what happens to my debts?

Typically, bankruptcy discharges unsecured debts. However, there are some exceptions under the law where the following debts remain:

  • Student loans (that are less than 7 years old)
  • Child and spouse support
  • Fines and payments ordered by the court
  • Debt as a result of theft or fraud
  • Certain government-related overpayments.

The discharged debts include:

  • Credit card balances
  • Unsecured personal loans/ line of credits
  • Unpaid utility bills
  • Medical bills
  • CRA income tax debt
  • 407 debt

Debt Consolidation

What is debt consolidation?

Debt consolidation is a form of debt refinancing, taking one loan out to pay off many others. It doesn’t erase the original debt amount, but transfers the amount to a different lender or type of loan. Multiple debts are combined into one, with one monthly payment that includes a lower interest rate, making this easier to pay off the debt consolidation sooner. Debt consolidation is used as a tool to deal with student loan debt, credit card debt, and other liabilities.

How does Debt Consolidation work?

Debt Consolidation is a personal loan you apply for in an amount that will pay off all or some of the existing debts that you wish to get paid. The lender will review your credit and verify your income to ensure your qualification. Once the lender approves your loan, the interest rate will be set based on your credit score. The money from the loan will be used to pay off all or some of your existing debts. It can make your life easier as you only have to repay the consolidation loan with a one monthly payment.

What’s the difference between debt consolidation and a consumer proposal?

Debt consolidation involves taking out one big loan to pay off many small loans while in a consumer proposal, it takes care of all unsecured debts, reduces the debt amount, and having to pay only one low monthly payment, stopping all interest.

Can Debt Consolidation help my credit score?

While debt consolidation lowers or eliminates your debt, it has a positive impact on your credit score, too. Beyond helping you reduce your number of monthly payments into one payment that is more manageable to keep you on track by not missing any payments that helps to build your credit score.

Credit Counselling

What is Credit Counselling?

Credit counselling is a process where debt consultant/s help debtors with their debt settlement by providing financial education, budgeting, and guidance in order to reduce and eliminate their debt.

What does a credit counsellor do?

When you decide to go for credit counselling, a debt consultant/s will go through your entire financial situation. They will figure out all your available options and help you determine the best route forward. They will put you on a debt management plan and give advice about planning, budgeting, and making payments that will help improve your financial situation to prevent it from happening again in the future.

Will Credit Counselling affect my credit?

Getting a free consultation by simply talking to a debt consultant/s  won’t affect your credit score. Once in the program, it may bring down your score, depending on what your credit score is currently. Taking control of your finances and paying off your debt will outweigh any temporary dings to your credit score.

How much does credit counselling cost?

In a credit counselling program, you are paying back the full amount of debt owing. There are fees that vary depending on the agency, but there’s typically a set-up fee and a monthly fee based on a percentage of the debt owing, with the additional payments to your creditors.

How long does credit counselling take?

Credit counselling sessions may vary in length depending on each client’s particular circumstance and the process that needs to be taken. Generally, counselling sessions should last approximately 60 minutes plus.

Get Your Free
Consultation Now!
Find out how you can quickly improve your creditworthiness by setting up a free consultation with us today.
How much debt are you in?
Enter Your Total Unsecured Debt Amount
Calculate My Debt

How much can you save?

Enter Your Total Unsecured Debt Amount