Solutions to Debt Problems

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Have you tried to rearrange your budget so you can pay off money you owe, but it wasn’t enough? You probably have too much debt. It’s time to find a solution and put an end to the pressure.

There are several possible solutions when you owe too much money. Depending on your personal situation, you can take some of these steps:

  • Try to negotiate an agreement with the people you owe money to change the dates and amounts of your payments based on your budget.
  • Try to consolidate your debts with one financial institution (get one loan to pay of all or several other loans at once).
  • Register for voluntary deposit (voluntarily depositing part of your income into a court to repay your debts).
  • Consult a trustee in bankcruptcy to make a consumer proposal (offer to creditors to try to settle your debts) or to declare bankruptcy.


One of the dangers of living with debt problems too long is that you might become insolvent.

People who are insolvent can no longer able to pay their debts. This generally means that they have over $1,000 in debts and are in one of the following situations:

  • They are unable, for one reason or another, to pay their debts when they become due.
  • They have stopped paying their debts or monthly bills (power bills, telecommunication bills, credit card balances, etc.).
  • The value of all the property they own (their "assets") is less than the value of all their debts ("liabilities").

However, insolvency is one of the conditions for declaring personal bankruptcy or making a consumer proposal.

Important !
This article explains in a general way the law that applies in Quebec. This article is not a legal opinion or legal advice. To find out the specific rules for your situation, consult a lawyer or notary.