Call Clear Debt Solutions:


Frequently Asked Questions

Your success is ours.

Clear Debt Solutions has been established as Ontario’s most trusted Debt Relief Company since 2006. We have provided service to thousands of our customers to get out of debt and saved them millions of dollars. We only commit what we can provide according to the standards set by the Government approved programmes.

Our management team is highly qualified in relevant industries to provide a wide range of services including legal matters, real estate, mortgages, financial services and credit counseling. We are honest, respectful and understand the unique needs of each client before the services are offered.

We represent our clients till the very end and stay committed to protecting their case against creditors who try to charge unfair interest rates and extract unfair payments.

Please visit our testimonials to hear what our customers have to say about us.

When Debt is your problem we are your solution.
Call us for a free consultation and get debt free.

Our Process is Simple and completed with-in a week:

Step 1 – Free Consultation

Your initial consultation is FREE and one of our advisors will use the information that you have provided and present you with all of your options and discuss the various strategies within those options.

Step 2 – Program Selection

Once presented with all of your options you and your advisor will decide on the Government approved program that suits your situation best and discuss the move forward strategy.

Step 3 – Take Action

Your advisor will set up an appointment with a Court Officer and present the Government approved program as well as negotiate the terms of the program that best suit your needs.

Step 4 – Stop all creditors’ actions

After signing of the documents, you’re legally protected against your creditors. Collection calls will stop; many monthly payments will become one and the weight clearly is off your shoulders.

Step 4 – Debt Free

After having paid the settlement in full –you will receive a “Certificate of full performance” or “Absolute Discharge” letter from the court, meaning that you are legally Debt Free.

It is our pleasure to see our clients breathe a sigh of relief when all of the stress from the debt is lifted off of their shoulders and they are on the road to a debt free living.

Your success is ours.

Debt settlement operators and non-profit organizations are not charity organizations. They don’t work for free: they are paid a percentage on the settlement by the creditor.

“The more they recover from the consumer, the more they get”
“They work for the creditor not for the consumer”

Under the debt settlement plan, the consumer makes monthly payments into an account until there is enough money to make a settlement offer after realizing the fees to the debt settlement company. The fees of these companies are usually collected from your first 3 to 4 months payments.

The main disadvantages of dealing with these companies are:

  • Local offices – When dealing with debt issues it is very important to have someone in your local area that you can deal with face to face rather than over the phone.
  • No legal binding - Since they are negotiate your debts, there is no guarantee that all the creditors will accept your offer and are not bound to legally honor any contracts.
  • Creditors and syndicates backed schemes - Most of these companies are backed by creditors and have the advantage of heavy advertising budgets, luring the debtors who get sucked in by their sales pitch and fancy websites.

Consumers who choose to use debt settlement services often find that their situation worsened with a variety of potential negative outcomes and ultimately come to us.

Under the Bankruptcy and Insolvency Act you may make a Consumer Proposal to your creditors to reduce the amount of your debts, extend the time you have to pay off the debt, or provide some combination of both. A government approved “Registered Consumer Proposal” programme is set to assist consumers (like you) to get out of Debt, under the Bankruptcy and insolvency act (BIA).

While, a debt settlement plan is not a court monitored process and you are the mercy of the creditor - who may accept or change his mind after your settlement. Many creditors including Revenue Canada Agency do not accept such settlements.

Consumer Proposal has many benefits over Debt Settlement plans. The main benefits are:

  • A government approved programme to assist consumer to get out of Debt, under the BIA Act
  • One monthly & manageable monthly repayment, with an option to accelerate payments
  • 0% interest on the payments
  • Protect your assets – house, car and income
  • Secured creditors remain outside this transaction and only un-secured creditors are addressed

Most creditors accept a proposal and do not want you to bankrupt as they recover more than they would in a bankruptcy.

Consumer Proposal

Like the word suggests, it is a proposal made by the debtor (you) to the creditor or creditors to negotiate the amount( depending on their assets and liabilities) to repay a lower amount over a long period of time without any interest.

  • Stop harassing phone calls from your creditors
  • Consolidate all of your debts into one low monthly payment
  • Preserve your assets- house, car, income.
  • Reduce your debt up to 70 % at no interest
  • Reduce or Eliminate Government debt, credit card debt, business and payday loans
  • Re-build your credit faster


Bankruptcy is a legal process, regulated by the BIA Act, by which you may be discharged from most of your debts. The purpose of the Act is to permit an honest, but unfortunate, debtor to obtain a discharge from his or her debts, subject to reasonable conditions.

Bankruptcy eliminates your debts to give you a fresh start. The concept behind bankruptcy in Canada is that you assign (surrender) everything you own in exchange for the elimination of your debts.

Personal bankruptcy is a legal process, governed by federal law (The Bankruptcy & Insolvency Act). The law is designed to permit an honest but unfortunate debtor to obtain relief from his or her debts while treating creditors equally and fairly.

1st time bankrupts (without surplus income) are discharged in 9 months.

  • Surplus income and other assets are considered the key to Bankruptcy.
  • Assets like house equity, RESP and RRSP may be liquidated (subject to certain conditions)
  • Locked in RRSP are exempted.

The largest credit bureau in Canada, Equifax, maintains this record on your credit report for a period from the date of your discharge or last payment:

  • A consumer proposal for three years after your last payment.
  • A bankruptcy for six years from the date of your discharge.

It is very complicated to understand the proceeds in a Bankruptcy and advise you to call us for a free consultation.

  1. Paying your bills in time is an option, which has been tried and failed. Above is a statement from a Bank showing the time to fully repay your debt
  2. Then, for some, there is an option of taking a home equity loan or borrowing from a family member or friend to pay off the most pressing creditor. “Borrow from Peter to pay Paul”

People who find themselves in this kind of situation are paralyzed and think that there is no other solution. They convince themselves, making the minimum payments is still a manageable option.

If payments to the creditors simply stop, that person’s credit history is being destroyed and none of the debt is being paid off.

  • Secured Loans survive both Bankruptcy and Proposal process as they are secured against a property.
  • RESP and RRSP (12 months contributions) is sizeable in Bankruptcy but are exempted in Proposal.
  • Locked-in RRSP are exempted.
secured vs. unsecured loans

The following debts also survive a proposal or Bankruptcy Process.

  • Alimony and child support (domestic support obligations)
  • Debts obtained through fraud, false pretenses or false representation
  • Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
  • Debts for willful and malicious injury
  • Debts for fines or penalties to governmental units
  • Property taxes and fines imposed by law for driving offenses and 407 Debts

You are personally liable for business debts, depending on the legal structure of your business. Incorporation limits your liability to the extent of personal guarantee only.

  • Any secured liens on equipment or Vans / cars leased by the corporation are the secured liabilities which survive any insolvency process.
  • Small business Loans: SBL would usually hold a 25% personal security by the director.
  • All other debts like line of credit, visa cards, Central Revenue Agency debts, can be erased in the insolvency process.

Since understanding the Directors liability on business debts is complicated, we would advice you call our office for more details.

Garnishment of your wages is a real slap in the face. You lose the money and control of your finances in addition to the embarrassment of your employer knows your debts.

A registered consumer proposal or Bankruptcy immediately stop any such actions by the creditors and released you money to pay for your proposal faster.

All pre-existing judgments or court orders against unsecured debts including Central Revenue Agency debts, student loans (over 7 years) will get stay orders.

Collection companies cannot harass you any more and you have peace of mind back.

A consumer proposal is easily accepted by the creditor because it will give them a better realization than if you were to go Bankrupt.

The realizing values in a Bankruptcy has to be first established based on various factors like : debtor’s share of the Equity on the house, household income, RRSP contribution in the last 12 months, RESP and other assets in relation to the liabilities.

Based on the above information the proposal is offered. This is a complicated process and suggests you call us for a free consultation to analyze your situation and Proposal Offer.

You don’t just lose a house because you did a proposal or Bankruptcy. The equity you have accumulated in your house and your cash flow are key factors. This is the same with other assets and car.

This is a very common concern. There is a reaction to every action and you have to ask yourself – how do I get out of this situation?

A credit score is a “snapshot” of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.

A Registered Consumer Proposal’s effect on your credit is generally less than a bankruptcy. Consumer proposals typically produce an R7 rating, whereas personal bankruptcy will produce an R9. This is the lowest rating.

The best part is that when you have paid off your proposal –it purges out of the credit bureaus and you start rebuilding the credit, while Bankruptcy stays on your credit for 7 years.

Clear Debt Solutions will have to provide two mandatory counseling sessions by Law – 1st counseling after a month of registration and 2nd after 45 days (after the 1st counseling). We will discuss various aspects of financial management including budgeting and re-building of credit.

We will help you learn about the process of re-establishing your credit including getting you a secured credit card and loans that would help in the process.

Filing for bankruptcy in Canada does not directly affect your spouse. Your debts are your debts; only you are responsible for them. If you go bankrupt, your debts are discharged. Your husband or wife or common-law spouse is NOT responsible for your debts.

The only exception is if your spouse has co-signed or guaranteed your debt. For example, if you took out a loan and your spouse co-signed for it, it is also legally their loan. If you both have a credit card on the same account, the credit card debt legally belongs to both of you.

These issues are complicated. It is often difficult to determine if a credit card is a joint card, or just a supplementary.

The creditor has 45 days after the offer is presented to them to reject, oppose or accept. In the last 8 years, the offers presented by Clear Debt Solutions have never been rejected. We understand the process and make an offer that is easily accepted by the creditors.

51% or majority of the creditors need to accept the offer to get passed by the court. The realization value of a proposal has to e more attractive than a Bankruptcy to get approved.

After a Consumer Proposal has been in effect, should your situation change due to events beyond your control like a job loss, it can be amended to reflect the prevailing conditions.

A register consumer Proposal allows you to pay the agreed amount in 60 months (5 Years) with an option to increase your payments to pay off faster.

“Certificate of performance” is legal document executed by the court on the completion of the proposal terms like full payment. A copy is sent to the credit bureaus, informing them that you have performed your duties and the creditors cannot hold anything against you. You are now deemed legally “Debt Free”.

In the case of Bankruptcy, an absolute discharge on your debts is issued by the court and the credit bureaus are notified.

For a few people, the answer is a definite yes. If you have committed fraud, you should feel guilty. Fraud in this case means you had no intention of ever repaying your credit cards, but you ran them up anyway, and then went bankrupt.

However the vast majority of people who go bankrupt do not commit fraud. They incurred debt for normal living expenses, and then when their circumstances changed, they were not able to repay their debts.

The point is this: Most people don’t want to file for personal bankruptcy in Canada, and they feel guilty about doing it, but if your debts are overwhelming, bankruptcy may be the option.

It is better to go bankrupt than have your wages garnisheed for many years. It is more important to feed your family and pay your rent than to service you creditors.

You can obtain a free credit report from each of the two credit reporting agencies, Equifax and TransUnion, once a year for no charge.

Once you receive a copy of your credit report, it will contain explanations to help you understand the details of your credit report. It should also let you know how to correct mistakes or dispute information that you think is incorrect. The Government of Canada has also published a guide called Understanding Your Credit Report and Credit Score to help Canadians understand how the credit reporting system works in Canada.

Our Reputation Speaks For Itself

When God closes a door, he opens a window

We always believe that “When God closes a door, he opens a window” When debt is the problem, we are the solution.

Call us now 905-230-7653