Debt Relief Canada – Discover government approved programs to get out of debt faster

Erase up to 80% of your debt with a trusted debt relief program

Benefits

We handle your debt. You get your life back.

Before

  • Borrowing from friends and family
  • Unmanageable bills you can’t pay
  • Constant wage garnishments
  • Constant short-term payday loans
  • Stress and sleepless nights
  • No clear repayment plan

After

  • Eliminate unsecured debts
  • Only repay what you can afford
  • Low single monthly payment
  • Freeze interest and charges
  • Stop wage garnishments
  • Stop harassing collection calls

Start your journey to debt freedom today

How it works

Debt relief in 3 simple steps

1

Answer a few quick questions

2

Get your custom debt relief plan

3

Reduce your debt

Debt relief in 3 simple steps.

Eliminate most types of debt

  • Overdrafts
  • Personal loans
  • Credit cards
  • Store cards
  • Rent arrears
  • Lines of credit
  • Student loans
  • Utility bills
  • Collections
  • Payday loans
  • Tax debts
  • Student loans

Example debt scenario

Life before and after debt relief

Let’s say you owe…

CRA Debt

$13,020.92

Credit Card

$8,244.36

Bank Overdraft

$1,539.09

Utilities Arrears

$760.68

CashMoney Loan

$2,302.40

Student Debt

$3,923.50

How your monthly payments change with debt help

Before our help the debts totalled $756 per month.
After our help the debts totalled $174 per month.

See how much debt you can erase today

Testimonials

Join over 7,600 Canadians who’ve found debt relief

My experience was nothing short of seamless. I was initially unsure and a little nervous because I didn’t know what to expect and hadn’t used these kinds of services before. Using Farber was one of the easiest things I’ve ever done in my life. They are with you every step of the way and even after!

Honestly, being in a financial compromise isn’t fun or pleasant. But working with Farber made it less scary and confusing. They helped me assess my options as she patiently explained and educated me.

Great service. I was explained everything in detail. They made you feel like you were not alone. I would recommend them to anyone who needs help.

My life was so stressful knowing I have payment due that I couldn’t pay on time plus with all the phone calls didn’t make matters better, I tried all options with the bank but that didn’t work out, until I reached out to Farber had live chat explaining how to resolve my debt, and for that I’m so grateful.

My husband and I had the absolute most pleasant experience with Barry from Farber. He was simply amazing and so efficient at getting everything finalized. We would highly recommend Farber and partners. We feel a huge weight lifted.

Jessica E, was great to deal with during both counselling sessions. Down to earth and completely understanding of the situation. I only wish I had done this sooner. Farber is a great company to deal with.

Farber was a huge help in starting my debt relief journey. I would never have experienced this feeling if I stayed on the debt cycle. Thank you Farber for all your assistance in becoming debt free.

Great experience! I was very nervous to file this debt proposal, but the consultants were so very understanding and patient. Also very knowledgeable and very available for any of my questions and/or concerns. Super, friendly people to work with. Jackie is awesome.

Trusted debt relief programs in Canada

Backed by over 45 years of experience and having supported more than 200,000 Canadians, our federally regulated debt relief programs are designed to reduce unsecured debt and help you take the first step toward a better financial future.

  • Brought to you by Farber Debt Solutions
  • Licensed Insolvency Trustees
  • 75 offices across Canada
  • Free, no-obligation consultation
  • In-person, phone or video appointments

About the site

A woman considering debt relief options in Canada.

Popular debt topics

FAQs

Common questions about debt relief in Canada

What are the main debt relief options in Canada?

If you’re juggling too much debt and struggling with your debt repayments, there are several Canada debt relief options worth knowing about:

  • Consumer proposal: A legal agreement to reduce your debt, backed by the federal government.
  • Debt consolidation loan: Combines all your debts into one affordable monthly payment, often with lower interest.
  • Debt management plan (DMP): Arranged through a credit counselling agency to repay debts in full, usually with interest relief.
  • Bankruptcy: The last resort. It clears your debts but comes with serious legal and credit implications.
  • Debt settlement: Negotiating with creditors to pay less than you owe, usually done through debt settlement companies.

Each route comes with pros, cons and risks, depending on your financial situation.

Most debt solutions require some level of sacrifice and will affect your credit report.

Choosing the right Canadian debt relief program can save you time and money.

Do government debt relief programs exist?

There’s no magic government grant to pay off debts. However, the federal government regulates two powerful legal solutions: a consumer proposal and bankruptcy.

Both fall under the Bankruptcy and Insolvency Act, and must be administered by a Licensed Insolvency Trustee.

These programs offer legal protection from creditors and can help you get out of debt by reducing debt if you’re truly unable to repay.

Beware of debt consultants and debt settlement companies promising “government programs” but charging fees just to refer you to someone else.

Go directly to a Licensed Insolvency Trustee, save money and get the right advice.

Which debt solutions are regulated by the Canadian government?

Only two debt solutions are legally regulated by the Canadian government:

  • Consumer proposals
  • Bankruptcy

That’s why they are often referred to as “government debt relief programs”.

Both are formal processes governed by the Bankruptcy and Insolvency Act and must be overseen by a Licensed Insolvency Trustee (LIT).

Trustees offer legal protection from creditors, an interest freeze, and a structured path to becoming debt-free.

Debt consolidation loans, credit counselling, and debt management plans aren’t government regulated, so if someone’s advertising them as official programs, walk away.

What is a consumer proposal?

A consumer proposal is a legal process where you offer to repay only a portion of what you owe, often much less than the full amount.

The rest of your debt is forgiven and the payments are spread out over a period of up to five years.

You can benefit from:

  • A debt reduction of up to 80% in some cases
  • One affordable monthly payment
  • Legal protection from creditors
  • No more interest on your debts
  • A chance to avoid bankruptcy

You may be able to keep key assets like your home and car. In most cases, your car loan and mortgage can continue as normal.

It’s handled by a Licensed Insolvency Trustee, and it’s Canada’s most popular form of debt relief.

With a consumer proposal, you can keep your assets and rebuild your financial future without the lasting impact of bankruptcy.

What is bankruptcy?

Bankruptcy is a legal debt relief solution that wipes out most of your unsecured debts if you can’t make your minimum payments.

It’s often a last resort for people in financial hardship.

Here’s what happens during the bankruptcy process:

  • You surrender certain assets (though many are protected).
  • Your credit score takes a hit.
  • You’re discharged from your debts after 9 to 21 months (for a first bankruptcy).

Bankruptcy is administered by a Licensed Insolvency Trustee, and governed by the Bankruptcy and Insolvency Act.

If you’re drowning in debt and have no way out, it may be the reset button you need, but it’s not a decision to take lightly.

What is credit counselling?

Credit counselling services can help you with money management, financial literacy, and offer debt solutions like debt management plans.

It’s typically offered by a certified credit counsellor, either from a non-profit organization or a private firm.

They can help you:

  • Create a realistic budget
  • Understand your options, like consolidation, debt management programs or avoiding bankruptcy
  • Set up a plan to repay your debts over time

Just be careful: some credit counsellors are really for-profit debt consultants in disguise. Always ask about fees and ensure they’re non-profit credit counselling organization.

What is a debt management plan?

A debt management plan (DMP) combines your unsecured debts, like credit card debt or payday loans, into one monthly payment.

A certified credit counsellor works with your creditors to reduce or waive interest, helping you repay everything you owe faster and with less stress.

Key things to know:

  • You must repay your outstanding debts in full—this isn’t debt forgiveness.
  • It doesn’t offer legal protection like a consumer proposal.
  • It can affect your credit during the repayment period.

It’s a solid option for people who are overwhelmed with their debt situation but still able to repay with support.

What is a debt consolidation loan?

A debt consolidation loan doesn’t reduce what you owe. It’s not debt forgiveness, but it can make things more manageable and relieve financial stress.

You borrow money in the form of a new loan, usually from a bank or credit union, to pay off your existing debts like credit card debt, overdrafts and personal loans.

You’re left with just one debt, with monthly loan payments, often at a lower interest rate than what you were paying before.

Debt consolidation loans can help simplify your finances, reduce the chance of missed payments and make it easier to stay on track.

But make sure the new debt consolidation loan is affordable, and don’t run up more debt on the old credit cards once they’re cleared.

Debt consolidation is more a tool than an outright solution for debt problems. But if used properly, it can help you clear multiple debts and stay focused on your financial goals. If misused, it just adds more problems.

What is debt settlement?

Debt settlement means negotiating with creditors to pay less than you owe, often in a lump sum.

While it can reduce your debt, it’s risky. There’s no legal protection, creditors don’t have to agree and collection efforts can continue.

You don’t need to use a debt settlement company, and doing so often means spending extra money. Many charge high fees or make false promises.

Speak to a Licensed Insolvency Trustee first to explore safer, regulated options that can lead to reduced debt and a more stable financial future.

Does debt forgiveness exist?

Yes, but only in very specific cases.

Creditors may agree to forgive part of your debt if:

  • You go through a consumer proposal.
  • You declare bankruptcy and meet the discharge conditions.
  • You negotiate a debt settlement and they agree to write off the rest.

Whether debt is forgiven on a number of factors, including how much debt you have and your income.

Outside of that, most creditors won’t voluntarily forgive consumer debt unless they believe it’s uncollectible.

Ads promising “total debt forgiveness” are often misleading, so always read the fine print.

You can also get student loan forgiveness through the provincial or territorial government.

Tax debts are not always forgivable but can be in some cases.

What is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee (LIT) is the only professional in Canada legally allowed to:

  • File a consumer proposal or bankruptcy on your behalf
  • Provide legal protection from your creditors
  • Help you understand government-regulated debt relief options

They’re licensed by the Office of the Superintendent of Bankruptcy, part of the federal government.

Working with an LIT gives you peace of mind. There’s no sales pitch and no upfront fees fees. They work with you to set up a repayment plan over a manageable repayment period.

A Licensed Insolvency Trustee is the only professional who can file a consumer proposal or bankruptcy for you. No other debt relief services can file one on your behalf.

See if you qualify for debt relief in Canada

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Government approved debt relief in Canada

See if you qualify for debt relief in Canada

Debt relief programs by province