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Not all debt relief is the same. Find the path that fits your situation.
Day Group Inc. is a federally licensed insolvency trustee. We are legally authorised to administer every formal debt relief option available to Canadians. Here is a plain-language overview of each, so you can come to your free consultation with a clearer idea of what might work for you.
Debt relief options available to Canadians.
Each option below is a genuine debt relief path, not a marketing category. The right choice depends on your specific situation. A free consultation with Day Group will confirm which fits.
Consumer Proposal
A legal agreement that may allow you to settle your unsecured debts for less than you owe, with one fixed monthly payment and full creditor protection from the day of filing.
- Keep your home and vehicle in most cases
- Interest stops on the date of filing
- Up to 60 months to repay
- CRA tax debt can be included in most cases
- No credit check to qualify
- Only a Licensed Insolvency Trustee can file
Personal Bankruptcy
A legal process that gives you a complete fresh start. Many assets are protected by provincial exemptions. First-time filers with no surplus income may be discharged in 9 months.
- Provincial exemptions protect key assets
- As short as 9 months for first-time filers
- Interest stops on the date of filing
- Debts legally discharged on completion
- Only a Licensed Insolvency Trustee can administer
- Surplus income rules may apply depending on income
Debt Consolidation
Combining multiple debts into one loan or payment, ideally at a lower interest rate. Works well when you can qualify for a competitive rate and your debt is manageable in full. Day Group provides guidance, not loans.
- Repays full amount owed, plus interest on new loan
- Requires qualifying credit and income
- No legal protection from creditors
- Lenders will not typically finance CRA tax debt
- Useful when debt is manageable and credit is strong
- An LIT can assess whether it is actually the better path
Credit Counselling
Financial education and budgeting guidance that helps you manage money more effectively. Includes the two mandatory sessions required during every consumer proposal and bankruptcy, plus standalone guidance for people not yet in a formal process.
- Required in every consumer proposal and bankruptcy
- Two sessions, no extra charge, included in the process
- Covers budgeting, credit management, and rebuilding
- Available as standalone guidance outside of insolvency
- Non-profit agencies also offer debt management plans
- An LIT can help you determine if you need more
Option cards show general characteristics. Your actual eligibility and recommended path depend on your complete financial picture.
Some signals that point toward each option.
These are general signals, not a diagnosis. The only reliable way to know which option fits your situation is a free consultation with a Program Manager. That conversation is free and carries no obligation.
You have stable income and assets to protect
A consumer proposal is typically worth exploring first. It lets most people keep their home and vehicle while settling unsecured debt for less than the full amount.
Your income is low or your assets are minimal
Bankruptcy may be a faster and simpler path to a fresh start. Provincial exemptions protect more assets than most people expect.
Your credit is strong and your debt is manageable
If you can qualify for a competitive interest rate and repay the full amount in a reasonable timeframe, consolidation may be worth exploring before a formal process.
You owe CRA tax debt
Lenders will not typically approve a consolidation loan to pay out tax debt, and credit counselling agencies cannot include CRA debt in a debt management plan. It can be included in a consumer proposal or bankruptcy. This factor alone often points toward a formal insolvency option.
Not sure where you land?
Most people who contact us are unsure. That is exactly what the free consultation is for. We review your debts, income, assets, and goals, and tell you honestly which option makes the most sense.
No pressure. No agenda. No cost.
How the options compare on the things that matter most.
Consumer Proposal
Bankruptcy
Consolidation
Reduce what you owe
Consumer ProposalYesSettlement for less than full amount
BankruptcyOftenDepends on assets and income
ConsolidationNoFull amount repaid plus interest
Interest stops
Consumer ProposalDay of filing
BankruptcyDay of filing
ConsolidationContinues on new loan
Legal creditor protection
Consumer ProposalYes, immediate
BankruptcyYes, immediate
ConsolidationNone
CRA debt included
Consumer ProposalYes, in most cases
BankruptcyYes, in most cases
ConsolidationNot in practiceLenders will not typically approve a loan to pay out tax debt
Keep your home and car
Consumer ProposalIn most cases
BankruptcyDepends on equity and exemptions
ConsolidationYes
Credit rating
Consumer ProposalR7 rating (3 yrs after completion)
BankruptcyR9 rating (6 yrs after discharge)
ConsolidationMinimal impact if paid on time
Requires good credit to access
Consumer ProposalNo
BankruptcyNo
ConsolidationYes
Filed by a Licensed Insolvency Trustee
Consumer ProposalRequired by law
BankruptcyRequired by law
ConsolidationNot applicable
General comparison only. Specific outcomes depend on your situation. Your Program Manager reviews all variables in your free consultation.
Only a Licensed Insolvency Trustee can file a consumer proposal or administer a bankruptcy in Canada.
Debt consultants, settlement companies, and credit counsellors cannot do this. Day Group Inc. is federally licensed by the Office of the Superintendent of Bankruptcy Canada. Our fees are set under the Bankruptcy and Insolvency Act.
Questions about choosing a path.
Can I choose my own debt relief option, or does the trustee decide?
You always make the final decision. A Licensed Insolvency Trustee is required to explain all your options and give you an honest assessment of which fits your situation. The trustee can recommend a path, but cannot require you to choose any particular option. Some options do have eligibility requirements, such as the debt cap for a consumer proposal, and your trustee will confirm what you qualify for.
What if my situation does not clearly fit any of these options?
Many situations are complicated by a mix of factors: some CRA debt, some secured debt, a mix of income sources, or assets that are hard to value. That is normal. The free consultation is designed specifically for these situations. Your Program Manager works through the details with you and explains how each factor affects your options. There is no situation too complicated to assess.
Does choosing a consumer proposal mean I admit I cannot manage money?
No. A consumer proposal is a legal process available under Canadian federal law. People use it for every reason imaginable: job loss, medical bills, business failure, relationship breakdown, or simply years of carrying more debt than income could support. Choosing a consumer proposal is a practical financial decision, not a reflection of character or competence.
Today is the day.
The first conversation costs nothing. A Licensed Insolvency Trustee will review your situation and tell you exactly which options are available to you.