Debt Settlement: How to Apply
Not sure where to start? Let’s walk through the debt settlement process in Canada — step by step — so you know exactly what to expect.
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What is the First Step to Filing for a Debt Settlement Program?
The first step to accessing debt settlement in Canada is speaking with a Licensed Insolvency Trustee (LIT) — the only professionals legally authorized to file all other forms of debt relief. Unlike debt settlement companies, LITs can provide regulated and legally binding debt relief options like consumer proposals.
At Spergel, your trustee will take the time to understand your full financial picture. They’ll walk you through your options — from informal settlement programs to consumer proposals — and assess your eligibility. We’ll work together to create a repayment plan you can afford and will negotiate directly with your creditors to reduce your debt. If a consumer proposal is the right fit, we’ll explain it to you and file it with the government on your behalf.
Find Out How Much You Can Save With a Consumer Proposal!
A consumer proposal is the only legally backed form of debt settlement in Ontario and can reduce your total debt by up to 80%. Use our free debt calculator to see what your new payments could look like.
Compare Your Debt Relief Options
We’ll break down the pros, cons, and legal protections of each so you can choose the option that fits your needs and goals.
Every financial situation is unique, and debt settlement isn’t the only path to relief. If you’re weighing different solutions — like debt consolidation, credit counselling, or filing for bankruptcy — it helps to compare them side by side.
step-by-step
How to File for a Debt Settlement Program
There are a few key steps to applying for debt settlement in Canada:
Speak with a Licensed Insolvency Trustee (LIT)
Only LITs can file for all forms of debt relief, including a consumer proposal.
Get a Free Financial Assessment
Your trustee will review your income, debts, and expenses to determine eligibility.
Choose the Right Solution
Your trustee will help you determine which debt relief solution is best for you. For example, if a consumer proposal is your best option, we’ll design a repayment plan together.
Negotiate with Creditors
We’ll handle the negotiations to reduce your debt and secure a fair monthly payment.
File Your Consumer Proposal
If a consumer proposal is your best option, once it’s filed, your creditors must stop all collection activity — including wage garnishments.
Make Monthly Payments
Payments are made through Spergel, typically over a term of up to five years.
Achieve Debt Freedom
Once your proposal is complete, the remaining debt is legally discharged.
Still Have Questions?
Book a call with Spergel today, and we’ll create a clear plan tailored to your needs.
next step
What’s the First Step for Debt Help?
The first step toward debt relief is speaking with a Licensed Insolvency Trustee — the only professionals legally authorized to file all forms of debt relief in Canada.
At Spergel, our experienced trustees offer personalized, non-judgmental support. We’ll meet with you (as often as you need), review your financial situation, and clearly explain every option available — including whether a debt settlement or another solution is best. There’s no pressure, just expert guidance. We’re proud to offer:
- Free, confidential consultations
- Clear, customized debt relief plans
- A 99% acceptance rate on the consumer proposals we file
- Help from the same trustee — start to finish
Everyone’s Situation is Different. Let’s Talk About You.
Book a free call with Spergel today, and we will make a plan with you on how to help.
Real Canadians. Real Success — Like Jordan
“After years of struggling with escalating tax debt and the overwhelming stress it brought into my life, finding Spergel was a turning point for me. Their team approached my situation with an incredible mix of professionalism, empathy, and expertise, taking the time to understand the nuances of my financial dilemma. They negotiated directly with the CRA, securing a payment plan that was both manageable and fair, and even managed to reduce my overall debt. What truly stood out was how they empowered me with the knowledge and tools to take control of my finances moving forward. Thanks to Spergel, I can focus on my career and being a father without the constant worry of tax debt looming over me.”
– Jordan, Ontario
Jordan'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.
How We’ve Helped Others
Every debt story is different — and so is every solution. Here’s what real clients had to say about working with Spergel.
Let’s Find the Right Solution for You
Every financial story is different. Let’s talk about yours and explore the solution that fits you best.
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