Pay back a portion of your debt within 5 years and keep certain assets
Explore your options
DEBT RELIEF: GET TO KNOW YOUR OPTIONS IN CANADA
If you’re ready to get out of debt once and for all, it’s important to understand your options. While filing for bankruptcy is often the first thing that comes to mind, you may have alternative debt relief solutions available to you, such as a consumer proposal or debt consolidation.
Not sure where to start? Your local MNP LTD Licensed Insolvency Trustee can help you navigate your options. We’ll review your unique financial situation and discuss all available debt relief solutions, so you can choose the best path forward. Start today with a free confidential consultation.
Debt help for Canadians
Find out how to get debt help and learn more about the most common debt relief solutions in Canada, so you can finally put your debt behind you.
When to seek debt help
While every financial situation is unique, here are some warning signs that you have a debt problem and expert debt help is needed:
- You’ve missed mortgage or loan payments
- You’re borrowing money or using credit card cash advances to pay bills
- Your credit cards are always at their limit
- You’re receiving threatening phone calls from creditors
- Your credit score is plummeting
- Debt stress is severely affecting your health and quality of life
If you’re struggling with any of the above, it’s time to meet with an MNP LTD Licensed Insolvency Trustee. Your local Trustee can explain what it means to declare bankruptcy, make a consumer proposal, or consolidate your debts. Your Trustee will also assist you in determining the solution that best fits your particular situation, including longer-term effects like the impact on your credit score and a projected date when you can expect to be debt-free.
Debt help solutions
The most common debt help solutions in Canada include:
Your Licensed Insolvency Trustee will assist you with paperwork, contact your creditors, end wage garnishments, and head off any further legal action against you.
We will develop a formal offer to your various creditors in order to settle unsecured debt. Assets are unaffected, interest is frozen, and wage garnishments end.
If you qualify for a debt consolidation loan, you can request that your bank or financial institution pays your creditors. You repay the bank with a single monthly payment, the interest on which is usually lower than credit card rates.
Accredited credit counsellors will assess your financial situation, provide practical budgeting advice, and reach out to your creditors on your behalf to propose more forgiving repayment terms.
The MNP Debt Calculator gives you an overview of your debt relief options, including timelines and associated costs of each solution. This tool takes into account the value of your assets, your income, and your total debt load to provide estimates that can help you weigh your options. Get started with the MNP Debt Calculator now.
Types of debt: secured vs. unsecured
Consumer debt generally falls under two main categories: secured debt and unsecured debt. The key difference between the two is that secured debt is guaranteed by some form of collateral, while unsecured debt is not secured by any form of collateral.
Secured debt is guaranteed by its collateral, reducing the risk to secured creditors. Should you fail to pay a secured debt (e.g., a mortgage), the creditor can begin proceedings to seize and sell the collateral (e.g., foreclosure on your house) in order to repay the debt. Examples of secured debt include:
- Car loans
- Secured credit cards
It’s important to note that secured debts are not included in a bankruptcy. In Canada, secured creditors cannot typically terminate your mortgage or secured loan simply because you filed for bankruptcy. This means you can continue to live in your home, but you will still need to make mortgage payments. If you are unable to keep up with your mortgage payments, however, your creditor may seize your property.
Unsecured debt is not secured by any collateral, which means creditors cannot seize any assets in the event of non-payment. However, unsecured creditors can hire debt collectors to pursue you, can sue you and, if successful, request to have your wages garnished and report your delinquency to credit bureaus, negatively affecting your credit score. Examples of unsecured debt include:
- Unsecured credit cards
- Payday loans
- Past due utility bills
Most unsecured debts are eliminated by bankruptcy, with only a few exceptions (e.g., certain student loans, child support payments, and court fines). Once you complete the bankruptcy process, you will no longer have to pay any unsecured debts in existence prior to you filing for bankruptcy.
Compare your debt relief options:
Take the first step towards becoming debt-free
The first step towards overcoming debt and regaining control of your finances is recognizing that your financial issues are unmanageable—and the sooner you meet with a licensed professional, the more options you may have to choose from.
Don't allow your debt to pile up any further. Take action by scheduling a confidential consultation with an MNP LTD Licensed Insolvency Trustee today. We’re ready to work with you to put personal debt out of your life for good.