Debt Consolidation: Exemptions

Learn more about what can be included (and what can’t) when it comes to debt consolidation.

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What Assets Are Exempt in Debt Consolidation?

Debt relief can take many forms — and knowing which debts can be included is the first step to finding freedom. At Spergel, we help with a wide variety of debt types that affect Canadians every day. Here are some common ones we can help you manage or reduce by up to 80%:

Credit card debt
Tax debt (CRA and provincial)
Payday loans
Student loan debt (7+ years out of school)
Car loans and other personal loans
Unpaid bills, utilities, or service charges

Whether you’re drowning in minimum payments, receiving collection calls, or unsure where to turn — we’re here to help you navigate your options.

Your Path to Simpler Payments Begins Here

Use our Debt Calculator to estimate how much you can save by consolidating your debt. It’s quick and easy.

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Explore the Options That Fit You Best

Every financial situation is unique, and there’s no one-size-fits-all solution.

Whether you’re considering a consumer proposal, bankruptcy, or another alternative, we help you weigh your options — clearly and without pressure. Our team is here to listen, not judge.

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non-exempt assets

Assets You May Need to Surrender in Bankruptcy

If you file for bankruptcy, certain assets may not be protected and could be used to repay your creditors:

Home equity (above provincial exemption)

If your home equity exceeds your province’s exemption threshold, that portion may be claimed.

Secondary vehicles

While one vehicle may be protected, additional or high-value vehicles could be non-exempt.

Valuable investments

Stocks, bonds, mutual funds, and non-registered savings may be subject to surrender.

Rental or vacation properties

Properties not considered your primary residence are typically not protected.

High-value artwork or collectibles

Items with significant value outside personal use may be included as non-exempt.

Business ownership equity

If you own a business, its assets and value may be considered non-exempt.

Inheritances received before discharge

Inheritances obtained during bankruptcy may need to be surrendered.

Windfalls (e.g. lottery winnings)

Unexpected lump sums received during your bankruptcy may be used toward debts.

What happens to these assets?

Your Licensed Insolvency Trustee will review your financial situation and provincial exemptions with you. Any non-exempt assets may be sold to repay a portion of your debts — but we’ll help you understand what you can keep and what to expect.

Book a free consultation with Spergel today, and we will calculate a payment plan for you to get started.

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FREQUENTLY ASKED QUESTIONS

Answers to Common Questions About Debt Consolidation

If you’re considering debt consolidation, chances are you have a few questions — and that’s completely normal.

From understanding what happens to your credit to knowing which debts can be cleared, we’re here to break it all down. Our team at Spergel is committed to providing honest, straightforward answers, so you feel empowered every step of the way. Whether you’re wondering how a consumer proposal works, how debt affects your assets, or when to file for bankruptcy — we’ve got you covered.

Explore our FAQ for answers to the questions we hear most.

FAQ

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How Do I Get Started?

The first and most important step is to speak to a Licensed Insolvency Trustee.

Licensed Insolvency Trustees (LITs) are the only professionals in Canada legally able to file all forms of debt relief. At Spergel, our experienced LITs offer:

Free consultations
As many meetings as you need
A full review of your financial situation and tailored options
Affordable debt relief solutions
A 99% acceptance rate on consumer proposals we file

Everyone’s Situation is Different. Let’s Talk About You.

Book a free call with Spergel today, and we’ll create a plan that’s right for your life.

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Real Canadians. Real Success — Like Chelsey

“I am immensely grateful to the Spergel team for guiding me through a challenging financial crisis with empathy and expertise. From negotiating with my creditors to providing emotional support and financial education, Spergel transformed my situation from imminent bankruptcy to renewed stability. Spergel is not just a service; they are partners committed to empowering individuals through complex financial journeys, and boy, was mine complex.”

– Chelsey B., British Columbia

Read Chelsey’s Story

Chelsey's Story is just one of many

It shows that once you face your debt and get the right help, life can get better – quickly. Discover more Success Stories of Canadians we’ve helped, or reach out to us.

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