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Debt settlement in Canada

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Regaining financial control with debt settlement

We know that the burden of debt can feel relentless and never ending. If you’re looking for a way to reduce your debt and start fresh, a debt settlement could be for you.

It’s a big decision, and one you shouldn’t take lightly, but our Licensed Insolvency Trustees are on hand to help you. With years of experience, we are here to offer judgment-free advice, making sure you find the best debt solution.

Give our team of professionals a call today to regain financial security.

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What is debt settlement?

During the debt settlement process, you hire a company to negotiate a debt with creditors on your behalf. You pay a fee and the debt settlement company will work to lower your overall debt and propose a lump-sum payment.

The key aim of a debt settlement plan is to eliminate debt in a manageable way that helps a person or company avoid more drastic measures.

In a lot of cases, the amount of debt paid back through debt settlement is significantly lower than the initial debt itself.

It does, however, come with risks. It could damage your credit and there’s no guarantee that it will be approved. If it’s not approved, you could be left off worse than when you started. It also doesn’t require all creditors to participate, so the burden may end up shifting.

That’s where our Licensed Insolvency Trustees come in – we will take the time to fully understand your situation and help you find the best solution for your financial needs.

Don’t face the stress of debt alone, give our team of specialists a call today.

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How does debt settlement work?

If you’re struggling to pay existing or growing debts, you can hire the services of a debt settlement company to help you manage those debts and create a plan to settle them over a period of time.

Debt settlement companies will negotiate with creditors on your behalf to reach a final settlement that’s agreeable to all parties.

Creditors aren’t obliged to negotiate or settle for a lower debt repayment, but often will because they will get more in return than if the person or company goes bankrupt.

A debt settlement company can handle all forms of communications with creditors and negotiate entirely on your behalf. This helps clients avoid calls and pressure from creditors, and in-turn the stress and anxiety that can come with it.

If you want to know more about debt settlement, you can call us today for a free consultation at 1-800-268-8093.

Shahrad Nakhaie
Shahrad Nakhaie
They are so great, every thing was so easy for me. Unbelievable, All my debt are gone now and I feel like I'm free, thanks Osman Ali for all you did for me, at the first time it's even hard to believe that was real, but it's real and easy. Thank you bro for your help.
Osman is a professional and you cant find anybody better. He really cared about my situation and paid attention to every little detail so he can help me best. Thank you osman and the rest of the team for helping me through my struggles.
Banda Gueye
Banda Gueye
Osman is a vert nice gentlemen, he was polite sweet and gentle. He really cared about my situation and paid attention to every little detail so he can help me best. Thank you Osman and the rest of the team for helping me through my struggles.
Kim Brown
Kim Brown
So far this has been a great company, I have been with them over a year. Every time I have an issue Josh jumps right on it and helps me out. He never makes me feel like I'm being a pain in the butt 🙂 I definitely recommend them, I have referred two of my family members to get help and now Josh is helping them as well. I thank you Josh for all the hard work and responding so quickly to all my messages.⭐️⭐️⭐️⭐️⭐️
Ajanthan Murugananthan
Ajanthan Murugananthan
Staff members Samuel and Josh were both amazing. Both very friendly, professional, and efficient. They took care of my credit card issues and line of credit and made it manageable. I would highly recommend Harris & Partners Inc. They have given me a new life in my financial life to success.
Paul Woo
Paul Woo
Staff members Yasan and Josh were both amazing. Both very friendly, professional, and efficient. They took care of my credit card issues and made it manageable. I would highly recommend Harris & Partners Inc.
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Debt settlement help - it's a simple process


Let’s sit down for a chat about your money situation. We promise a safe, private, and non-judgmental space. To give you the best help, we need to know about your income, debts, and who you owe money to. And remember, this chat is completely free and confidential.


Once we know what you’re dealing with, we’ll create a personalized plan for you. We’ll explore all the ways to manage your debt, focusing on what feels right for you. We’re here to find the best solution for you, without any pressure.


Once you’re happy with the plan, we’ll put it into action. Our main goal is to keep you financially healthy. We’re here to support and guide you every step of the way. We’re committed to making this process as smooth as possible for you, because your peace of mind matters to us.

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The risks of for-profit debt settlement companies

One of the biggest risks of this debt solution are for-profit debt settlement companies. They will often promise quick fixes to debt problems, and typically ask you to pay them directly, instead of paying your creditors.

The idea is that they will negotiate with your creditors on your behalf, supposedly settling your debts for less than you owe.

However, stopping payments to your creditors can significantly damage your credit score, land you with late fees, and increase your total debt due to accumulating interest. There is also no guarantee that your creditors will even agree to negotiate with these companies.

Many for-profit debt settlement companies also often charge high upfront fees. These fees tend to be non-refundable, even if the company fails to settle your debts. This is why it’s important to be cautious – there could be a conflict of interest, where their main goal may be to make profits rather than genuinely help you.

We understand that this can make your decision even harder to make, but you don’t have to go through this alone. Our main goal will always be to help you find a way out of your financial struggles. Get in touch today for a free and confidential consultation – we will help you find the best debt solution for you.

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What to look out for when considering debt settlement companies

Before you sign up for a debt settlement service, make sure you thoroughly research the company. If you’re struggling with debt, the last thing you want is to be dealing with a company that doesn’t have your best interests in mind. Here’s what to look out for:

  • High pressure sales tactics– These companies often use telemarketing to get you on board so, if you receive a call, don’t feel pressured into making a decision on the spot.
  • High fees – Be wary of expensive upfront payments and monthly fees, these are often non-refundable, even if the company doesn’t settle your debts.
  • Delayed payments – If you notice your debt settlement company is paying your creditors late, they are likely doing this on purpose as a negotiation tactic and it can significantly damage your credit rating.

Another major thing to look out for is unrealistic promises that sound great but can rarely be fulfilled. Remember that debt settlement companies can’t:

  • Promise to significantly lower your debt
  • Guarantee your creditors are willing to negotiate
  • Stop creditors / debt collectors from contacting you and / or taking your money or salary
  • Manage government-regulated processes that free you from debt
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Debt settlement pros and cons

There are advantages and disadvantages to using a debt settlement plan to remove your outstanding debts and debt obligations.

Debt settlement advantages

  • Manageable monthly payments
  • Can cut the debt you pay back by up to 80%
  • Stop annoying calls
  • Avoid bankruptcy and keep personal assets

Debt settlement disadvantages

  • Can negatively impact credit rating
  • No guarantees creditors will agree to payment terms
  • You will face additional fees for the set-up of a debt settlement program

Alternatives to debt settlement in Canada

Not sure debt settlement is the right choice for you? That’s okay. There are other options available and our team is here to help you make the right decision for you.

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Option 1. Consumer Proposal

A consumer proposal is a practical way to reduce your debt and manage it better. It’s a legal agreement under the Bankruptcy and Insolvency Act where you arrange to pay a portion of what you owe to your creditors, over an extended period.

This setup allows you to spread your payments over several years, making each monthly payment affordable based on your financial situation, and has no interest!

Our Licensed Insolvency Trustees will make it even easier for you by handling the payments for you. Just send your payment to them, and they’ll take care of paying your creditors.

File a consumer proposal
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Option 2. Bankruptcy

The thought of bankruptcy can be overwhelming, but our team is here to guide you through it. Declaring bankruptcy means giving your assets to a Licensed Insolvency Trustee, who will use them to settle your debts.

While it’s a step to take only when necessary, it can effectively wipe out your debts, giving you a clean slate. If you’re considering this option, our professionals are here to help. We’ll sit down with you, understand your financial situation thoroughly, and work together to find the best solution for managing your debt.

File for bankruptcy

Our Licensed Insolvency Trustees - here to help Canadians with debt settlement

Struggling with debt can feel really heavy. But don’t worry – our team of friendly Licensed Insolvency Trustees is here to help you find your way out of it.

  • Jay harris
    Jay T. Harris
    Licensed Insolvency Trustee
  • kyle
    Kyle Harris
    LL.B., CIRP, LIT
    Licensed Insolvency Trustee
  • adam
    Adam Fisher
    Licensed Insolvency Trustee
  • Joshua Harris
    Joshua Harris
    Licensed Insolvency Trustee
  • advisor
    David Adams
    Licensed Insolvency Trustee
  • doug
    Doug Loiselle
    Licensed Insolvency Trustee
  • Rob McLernon
    Robert McLernon
    BComm, CIRP, LIT
    Licensed Insolvency Trustee
  • shelley
    Shelley Koehli
    Licensed Insolvency Trustee
  • Jill Strueby
    Licensed Insolvency Trustee

Debt settlement FAQs

Can I buy a house during debt settlement?

Yes you can. But it’s important to be aware that, in order to buy a house or apply for a mortgage, you usually need a strong credit rating to have a successful application and get favourable rates. Debt settlement programs can have an initial impact on your credit score, but in most cases less of an impact than other debt relief solutions, such as bankruptcy.

What is the difference between debt settlement and bankruptcy?

Both debt settlement and bankruptcy are designed for those who are struggling to repay the full amount of debt they owe.

Debt settlement programs are arranged on behalf of debtors by a debt settlement company. They are negotiated and actioned on their behalf with creditors in order to reach an agreement on a payment plan to pay all, or a percentage, of the debt they owe.

Bankruptcy, on the other hand, is a legal process that involves debtors surrendering assets to pay-off the debt.

How does debt settlement affect your credit score?

Debt settlement, like many debt relief programs, will in the vast majority of cases negatively affect your credit score.

A debt settlement program can affect your credit rating for 6+ years. However, each individual circumstance is different and the amount of debt, value of assets, length of repayment program and maintenance of payments can all have an affect on how much your credit score is impacted.

Get debt settlement advice with Harris and Partners

Speaking with a licensed insolvency trustee can help you make the appropriate decision that is best for you and your personal finances.

At Harris & Partners Inc., our Licensed Insolvency Trustees have extensive experience with debt settlement programs.

If you need help from those who specialize in solving debt problems, contact us at Harris & Partners Inc. Licensed Insolvency Trustee. In Canada, our federally Licensed Insolvency Trustees can help you achieve long-lasting financial solutions.

A Licensed Insolvency Trustee does not offer debt consolidation/informal debt settlement. A Trustee has alternative options.

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Support across Canada

Why Harris & Partners

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Remove up to 80% of your debt

Our Licensed Insolvency Trustees provide a customized service that could remove up to 80% of your debt and stress, so you can breathe easier.

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We speak your language

Our multilingual team provides support in many languages, from Farsi and Portuguese to Italian and Tamil, leaving out complicated jargon, so you understand everything, every step of the way.

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Debt support across nine provinces

Want to speak to someone in person? Our team is on hand to help at a Harris & Partners office near you.

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Where you can get debt settlement advice in Canada

No matter where you are in Canada, our offices are nearby to offer you the help you need.