Debt Settlement in Canada
Have up to 75% of your unsecured debts forgiven
Over 140,000 Canadians per year use government programs for debt relief. We can help you:
Stop interest from accumulating.
Reduce your debts to one monthly payment.
Put an end to collection calls.
What Exactly Is Professional Debt Settlement?
Professional debt settlement is assistance from Licensed Insolvency Trustees who are the only professionals legally authorized by the federal government to provide formal debt reduction under the Bankruptcy and Insolvency Act. The mechanisms behind debt settlement include immediate stay of proceedings that stops all creditor actions, binding negotiations that force creditor compliance, and legal discharge that permanently reduces debts.
Goth and Company is a federally licensed debt settlement provider that operates under strict government regulations, ensuring you receive legitimate, effective debt settlement with full legal protection from creditors. As Licensed Insolvency Trustees incorporated since 1993, we have specialized expertise in federal legal processes that govern debt settlement, ensuring your case follows all regulations properly.
The importance of professional debt settlement lies in the immediate creditor protection, legally binding agreements, and permanent debt reduction that only Licensed Insolvency Trustees can provide. Unlike debt settlement companies or credit counselors, we can legally force creditors to accept reduced payments and stop all collection activities.
Consumer Proposals vs Bankruptcy
How are they different? How are they the same? More information here…
Dealing With Student Loan Debt
Knowing all of your options can save you from wasting time and money.
Income Tax & CRA Debt Forgiveness
Find out what your options are to take care of debt with the CRA.
What is a Consumer Proposal?
Understand the basics of consumer proposals and how they work.
Emergency Relief Available
Need immediate protection from creditors? We can file emergency debt settlement documents to stop wage garnishment, collection calls, and legal actions within 24-48 hours. This emergency relief is available for Canadians facing urgent creditor actions including bank account seizures, asset repossession threats, or imminent legal proceedings.
Call 1-780-435-5110 for urgent debt settlement situations requiring immediate government protection.
Qualification Requirements in Canada
You qualify for debt settlement when you owe less than $250,000 in unsecured debt and cannot make regular payments as they become due. The requirements are straightforward: being unable to pay all debts in full, experiencing significant debt stress, or facing creditor legal action while having sufficient income to support reduced payments.
You should seek debt settlement when warning signs appear including avoiding creditor phone calls, making only minimum credit card payments, owing CRA back taxes for multiple years, having wages garnished, being denied credit repeatedly, using one credit card to pay another, relying on payday loans regularly, or consistently missing payments.
The decision factors are your debt-to-income ratio, asset situation, and ability to maintain basic living expenses while servicing reduced debt payments. Most Canadians who contact us find they qualified for debt settlement long before they realized professional assistance was available.
Types of Professional Solutions Available
Consumer Proposals – Reduce What You Owe
Consumer proposals are binding agreements that reduce outstanding debt by up to 70% while allowing you to keep all assets. As the only licensed professionals authorized to file consumer proposals, Goth and Company offers comprehensive creditor protection through federally regulated agreements that immediately stops collection calls and legal actions. Our proposals achieve a 99% acceptance rate because we understand exactly what creditors expect.
Division I Proposals – For Higher Amounts
Division I proposals provide debt settlement for Canadians with more than $250,000 in unsecured debt through enhanced oversight and creditor protection. Goth and Company provides detailed knowledge of complex debt settlement laws, helping you understand exactly what you can keep during settlement proceedings while achieving substantial debt reduction.
Management Solutions
We help you understand debt management options including payment plans, budgeting strategies, and formal proposals that consolidate multiple debts into a single affordable payment based on your actual income and expenses.
Comprehensive Solutions
Our Licensed Insolvency Trustees provide comprehensive debt solutions tailored to your specific situation, from consumer proposals to bankruptcy alternatives that work within your budget and protect your essential assets.
Comparing Available Options
The differences are significant in terms of debt reduction, asset protection, timeline, and legal authority. Consumer proposals allow you to keep all assets while paying 30-70% of debts over up to 5 years. Division I proposals handle larger debt amounts with enhanced oversight but provide the same debt reduction benefits and asset protection.
Through our proven settlement and fresh start programs, Goth and Company delivers substantial debt reduction that legally prevents creditors from pursuing settled debts in the future. Only Licensed Insolvency Trustees can provide these federally regulated solutions – debt settlement companies cannot offer the same legal protections or debt reduction capabilities.
How The Process Works
The process involves three main phases that typically span 2-4 weeks from initial consultation to creditor protection. Here’s exactly what happens at each stage:
Phase 1: Free Assessment and Option Review (Week 1)
What happens: We review your complete financial situation including all debts, monthly income, expenses, and assets. Our Licensed Insolvency Trustee explains all available debt settlement options and how each would impact your specific circumstances.
You need to bring: List of all debts, recent pay stubs, bank statements, and asset information.
Duration: 60-90 minute consultation
Phase 2: Choose and Prepare Your Solution (Week 2-3)
What happens: You decide which debt settlement option works best based on our professional recommendations. We prepare all necessary documents and explain exactly what to expect throughout the process.
Next steps are: Document gathering, form completion, creditor list verification, and legal document preparation.
Timeline typically involves: 5-10 business days for document preparation
Phase 3: File and Begin Creditor Protection (Week 3-4)
What happens: We file your debt settlement documents with the federal government, which immediately triggers creditor protection. Collection calls stop, wage garnishments end, and legal actions are suspended within 24-48 hours.
The protection includes: Stay of proceedings, interest freeze, collection call stops, wage garnishment prevention, and legal action suspension
What Are the Risks and Limitations?
The risks include credit score impact and compliance requirements throughout the debt settlement process. Consumer proposals result in R7 credit rating for 3 years after completion, while Division I proposals have similar credit impact but handle larger debt amounts.
The limitations are that secured debts like mortgages and car loans continue unchanged, court fines cannot be eliminated, recent student loans survive settlement, and mandatory counseling sessions are required. You must also complete monthly financial reporting and follow payment schedules strictly.
However, these limitations are outweighed by benefits for most people struggling with overwhelming debt. Success factors include following payment schedules, attending required counseling, maintaining honest communication with your trustee, and avoiding new debt accumulation during the process.
Obligations Eliminated Through Government Programs
Most unsecured debts can be settled through our debt settlement programs. Through our proven settlement and fresh start programs, Goth and Company delivers substantial debt reduction that legally prevents creditors from pursuing settled debts in the future.
Always Included:
- Credit card debt
- Bank loans (unsecured)
- Lines of credit
- Payday loans
- Phone bills
- Utility bills
- Personal loans
Sometimes Included:
- Income tax debt (CRA debts)
- Student loans (if completed studies more than 7 years ago)
- Rental arrears
- Business debts with personal guarantees
Never Included:
- Mortgage payments
- Secured car loans
- Court fines and penalties
- Child or spousal support
- Recent student loans (under 7 years since completion)
- Debts obtained by fraud
Find out what debt settlement options are available!
Free Professional Advice
Goth & Company are here to help. No cost. No obligation.
Why Choose Goth and Company
Goth and Company has been incorporated since 1993 and currently maintains professional licensing and good standing with the Office of the Superintendent of Bankruptcy, demonstrating our commitment to ethical debt settlement practices and client success throughout Edmonton, Alberta, and Canada.
Our Professional Expertise
- 99% consumer proposal acceptance rate – We understand exactly what creditors expect
- 30+ years of experience – Serving Canadians since 1993
- Federal licensing and regulation – Licensed Insolvency Trustees under government oversight
- Transparent, regulated fees – No hidden costs or surprise bills
- Comprehensive debt settlement services – All formal debt relief options available
- Personal approach – Understanding your unique financial situation and goals
Common mistakes to avoid when seeking debt settlement include choosing unlicensed providers, paying upfront fees, believing unrealistic promises, delaying action until creditor legal action begins, and not understanding the full scope of available options.
Client Reviews
See what our clients have to say about their experience with Goth and Company.
Recent Posts About Debt Settlement
We publish new content based on questions and feedback from our clients and visitors.
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Frequently Asked Questions
Below are commonly asked questions about debt settlement in Canada.
What are the costs for professional debt settlement?
The costs are regulated by the federal government with no hidden fees. Consumer proposal fees are included in your monthly payments to creditors. Settlement costs are determined based on debt amount and payment plan, with government filing fees also applying.
Your initial consultation is always free. We believe everyone deserves to know their debt settlement options without cost or pressure.
How do I choose the right debt settlement provider?
The right provider is a Licensed Insolvency Trustee regulated by the Office of the Superintendent of Bankruptcy. Only Licensed Insolvency Trustees can provide legal debt settlement and creditor protection in Canada.
Red flags to watch for: Upfront fees, unrealistic promises, unlicensed providers, pressure tactics, and guaranteed results without proper financial assessment.
Questions to ask: Are you federally licensed? What’s your consumer proposal success rate? What are the total costs? How long have you been practicing? Can you provide client references?
What happens after debt settlement is completed?
After completing debt settlement, you receive legal discharge documentation and begin rebuilding your financial life with reduced debts and fresh start protection.
Follow-up actions include: Obtaining secured credit card, building emergency fund, following monthly budget, monitoring credit reports, and considering RRSP contributions (always protected from creditors).
Long-term planning involves: Establishing good credit habits, maintaining employment stability, avoiding future debt accumulation, and building financial literacy skills.
How long does debt settlement take to complete?
The timeline typically involves:
- Consumer proposals: 6 months to 5 years (you choose based on affordable payment)
- Division I proposals: Similar timeframes with enhanced oversight for larger debts
- Creditor voting period: Maximum 45 days for creditor acceptance
Immediate relief starts within 24-48 hours of filing your debt settlement documents.
What are alternatives to formal debt settlement?
Alternatives include debt consolidation loans, debt management plans through credit counseling agencies, informal creditor negotiations, and the Orderly Payment of Debts program (available in some provinces).
Debt Consolidation Loans
Bank loans that combine multiple debts into single payment. Requires good credit and income qualification. You still owe full debt amount plus interest.
Debt Management Plans
Credit counseling agencies negotiate payment plans with creditors. Creditors can withdraw participation anytime, and not all debt types qualify (CRA debt typically excluded).
These alternatives work best for people with manageable debt levels and stable income. For overwhelming debt situations, formal debt settlement through Licensed Insolvency Trustees provides stronger protection and better outcomes.
Joint Debt and Family Considerations
When you have joint debts or co-signed loans, your debt settlement only eliminates your responsibility. The other person remains fully responsible for the entire debt amount.
Spousal Impact
Your debt settlement doesn’t directly affect your spouse’s credit score unless they’re jointly responsible for the debts. However, lenders may consider household income when your spouse applies for future credit.
Tax Implications
In Canada, forgiven debt through consumer proposals does not create taxable income. You won’t receive tax slips for settled debts and won’t owe income tax on forgiven amounts.