Canada Debt Solutions operating hours are between 9AM - 9PM EST, Please call us toll free at 1-800-683-6351 for immediate assistance.

FAQs

How do I know if Canada Debt Solutions is legitimate?

Canada Debt Solutions is a registered organization with the Canada Revenue Agency and the Province of Ontario in Concord, Ontario. 

What is a Consumer Proposal?
A Consumer Proposal is a Federally regulated program under Canada’s Bankruptcy and Insolvency Act, a legally binding agreement between a debtor and their creditors. This agreement allows us to collaborate with a Government Licensed Insolvency Trustee to advocate and negotiate with your creditors on your behalf. Our goal is to reduce your debt up to 80% and freeze your interest rates at 0%. Consumer Proposals must be completed within five years, allowing you to pay off the balance monthly within your means.
 
This program allows you to make one minimum payment towards all unsecured debts; credit cards, personal lines of credit, student loans, income tax, medical bills, and more, without the headache of multiple payments with interest piling up
 
Additionally, This program offers protection from any wage garnishment, Legal action, added interest or penalties.
How is a Consumer Proposal different from Bankruptcy?

A consumer proposal allows you to pay back what is deemed affordable and manageable based on your personal income and expenses, which we will evaluate with great detail and patience. Bankruptcy impacts your credit score and future financial goals, but you may also have to surrender your assets in order to eliminate your outstanding debt.

Does a Consumer Proposal reduce my debt?

Yes, a Consumer Proposal allows us, together with Licensed Solvency Trustees, to negotiate with creditors on your behalf to reduce your debt up to 80 %, giving you the opportunity to repay the new lowered balance with zero interest, fees or additional penalties. There is no minimum payment term. Consumer Proposals must be completed within five years, allowing you to pay off the balance monthly within your means.

Does a Consumer Proposal affect my credit score?

Our motto is One step back, two steps forward. Once you have entered into a Consumer Proposal, it will reflect on your credit history with the Credit Bureau of Canada and Collections. The great thing about a Consumer Proposal is that it will only stay on your credit report up to three years after your last payment. Maintaining a good payment history on unsecured debt while making proposal payments will help to rebuild your credit after the fact. We will also assist you with obtaining a secured credit card and tools for fast and efficient credit rebuilding.

Can my wages be garnished During a Consumer proposal?

No, when entering any debt relief programs, we take extra steps to ensure protection from all forms of garnishment penalties or added interest. 

What is debt settlement?
A debt settlement program is designed for consumers in debt that don’t meet the qualifications for a Consumer Proposal program and Home Refinancing program due to high equity. However, it does not cover Government-related debt (I.E., Income taxes/student loans). This program helps if you are dealing with unsecured debt and have assets that exceed your debt ( High Income). It is also the safer option in terms of your future financial goals as it does not reflect as harshly on your credit bureau.
Our partner Law firm negotiates with creditors on your behalf to reduce your debt up to 60 %. You’ll be able to repay the new lowered balance with zero interest, fees or additional penalties. There are no minimum payment terms, and to be completed within 49 months or less. You can pay off the balance as quickly as you are financially able to do so.
Unlike a Consumer proposal, a debt settlement is an informal program overseen by a law firm instead of an appointed Government Trustee, allowing you to take a more lighthearted route to get out of debt. Unfortunately, it is usually a higher payback than a consumer proposal.
Can my wages be garnished during debt settlement?

No, when entering any debt relief programs, we take extra steps to ensure protection from all forms of garnishment penalties or added interest. 

What is a Mortgage Refinance?

A Mortgage or refinancing is when you renegotiate the terms of your existing mortgage loan agreement or take out a second mortgage using the equity in your home.

When would I want to refinance my home to pay off my debt?

You may want to refinance your existing home and take out the necessary equity to pay off your high-interest debts. The upside to this is that you can pay off your balances, maintain your credit score and keep all products safe and open. A second mortgage or refinance has low-interest rates compared to most unsecured debts. Therefore, saves you quite a bit on interest incursion. 

Get pre-qualified within minutes.

Click here to get started.

 

Apply Now!