Debt Settlement

Making it possible for you to achieve your goals.

Debt settlement might be right for you if you are experiencing financial hardship and are looking at settling your debts off without having to file for bankruptcy.

Debt settlement is the process whereby we will negotiate, on your behalf, with your creditors a reduced amount in exchange for a lump sum payment.


There are several benefits to enrolling in a debt settlement program:

  1. Taking a step to regain control of your life and financial situation;
  2. It is an informal process, so your information is not posted publicly;
  3. Potential to pay less than total amount owing and to release you from debt obligations;
  4. Reasonable monthly program payment;
  5. Fastest debt resolution option.

Debts that cannot be settled:

  1. Income tax liability with CRA;
  2. Trust funds, such as HST or Source Deductions;
  3. Secured debts, such as mortgages and car loans;
  4. Most Student Loans–Please contact our office for more information;
  5. Fines or penalties imposed by court;
  6. Debts arising from fraud;
  7. Spousal or child support.

Effects on credit rating:

Unpaid debts will inversely affect your credit rating for each missed payment.  Until the debts are settled, they will indicate an R rating between R1 and R9.  Once the debts are settled, they will indicate “settled” on your credit report, which is not as negative as an R7 or R9. For further information on credit read this blog titled: Understanding Credit. 

For further information on debt settlement in Canada, read this blog titled: What is Debt Settlement?