Debt Relief Alberta
Compare every debt relief option available in Alberta, from credit counselling and consolidation loans to the Orderly Payment of Debts program, consumer proposal and bankruptcy.
- Every option explained
- Free and confidential
- Federally regulated
or call 1-587-701-5681
Free and confidential consultation
Regulated by the Office of the Superintendent of Bankruptcy
Updated:
How debt relief works in Alberta
Debt relief is any arrangement that reduces what you owe, lowers the interest, or makes the payments manageable. Some arrangements are informal and depend on your creditors agreeing. Others are legally binding and force them to stop.
Which one suits you depends on how much you owe, what you can afford each month, and what you need to protect.
Arrange a free consultation with our Alberta Licensed Insolvency Trustees. We’ll lay out all your debt relief options, protect your rights, and help you decide.
There’s no pressure or judgment, just clear guidance from experienced Licensed Insolvency Trustees.
Only a Licensed Insolvency Trustee can file and administer a consumer proposal and bankruptcy.
Robert Johnson, CPA, CA, CIRP
Licensed Insolvency Trustee
Enter your details and we’ll call to talk through your options.
1-hour callback, in working hours
No obligation.
Your options
Debt relief options in Alberta
In Alberta, there are six debt relief options. Some rely on cooperation from your creditors, while others are legally binding and do not require creditor consent.
Debt consolidation means taking out a new loan to pay off your existing debts, so you make a single payment to one lender instead of managing multiple creditors.
You still repay everything you owe, plus interest on the new loan.
Debt consolidation works if you have a good credit score and can get a loan with a lower interest rate than your current debts. If you can’t qualify for a better rate, or if the new rate is the same or higher than what you’re already paying, it won’t save you money.
A non-profit credit counsellor can negotiate with your creditors to reduce or freeze interest, then roll your unsecured debts into one monthly payment under a Debt Management Plan. You repay the full balance, usually over 3-5 years.
A debt management plan (DMP) is a structured repayment plan set up through a credit counselling agency. The agency negotiates lower or zero interest with your creditors. You then pay one monthly amount to the agency. They split it among your creditors.
Under a DMP, you pay back every dollar of the principal. No debt is forgiven. Any creditor can refuse to participate, and a DMP can’t stop wage garnishment or a lawsuit.
Both non-profit and for-profit agencies offer DMPs and charge setup and monthly fees. Compare these fees to your interest savings before signing up. If fees are too high, the plan may not be worth it.
Alberta is one of only four provinces to offer this, and here it’s administered by Money Mentors, a non-profit credit counselling agency. You repay your total debt at 5% interest in one monthly payment, and a court order makes it legally binding on your creditors.
It suits people who can repay in full but need to stop interest and collection calls. If repaying in full isn’t realistic, a consumer proposal often costs less.
A consumer proposal lets you offer your creditors a portion of what you owe, paid in fixed monthly instalments over up to five years. Once a majority accepts, every unsecured creditor is bound by it, and the remaining debt is legally forgiven.
You keep your assets and your payment never changes. Interest is frozen, and collection calls stop and wage garnishments are lifted the day you file.
A consumer proposal is available on unsecured debts up to $250,000, not counting the mortgage on your home.
When you file bankruptcy in Alberta, it eliminates most unsecured debt. A first bankruptcy with no surplus income ends automatically nine months after filing, provided nobody opposes your discharge and you complete your counselling.
You give up any non-exempt assets, and you pay surplus income if you earn above the government threshold. It’s the fastest and cheapest option when you low income and no assets to protect. If you have equity or savings you want to keep, a consumer proposal is a better option.
Debt settlement involves negotiating directly with creditors to accept a lower amount than what you owe. There’s no legal obligation for creditors to comply, so a creditor can say no.
Assets
Debt relief options compared
The differences that matter are what you repay, how long it takes, and whether your creditors can refuse.
| Option | What you repay | How long it takes | Binding on creditors | Stops a garnishment |
|---|---|---|---|---|
| Debt consolidation loan | All of it, plus interest | The term of the loan | No | No |
| Debt management plan | All of it, interest often reduced | Up to 5 years | No | No |
| Debt settlement | A portion, if creditors agree | No fixed term | No | No |
| Orderly Payment of Debts | All of it, at 5% interest | Up to 5 years | Yes | Yes |
| Consumer proposal | A portion, agreed with creditors | Up to 5 years | Yes | Yes |
| Bankruptcy | Little or nothing | 9 to 21 months | Yes | Yes |
If your wages are garnished or if you are being sued, only an Orderly Payment of Debts, a consumer proposal, or bankruptcy can trigger a stay of proceedings. This legal protection requires creditors to stop all legal action against you.
Why speak to a Licensed Insolvency Trustee first
A Licensed Insolvency Trustee (sometimes called a bankruptcy trustee) is licensed by the federal government through the Office of the Superintendent of Bankruptcy (OSB).
A Licensed Insolvency Trustee must explain all the different ways to resolve your debt problems.
Only a trustee can file a consumer proposal or a bankruptcy. A trustee’s fees are set by federal regulation, not by the firm.
That’s why it’s worth starting here even if you end up choosing credit counselling or a consolidation loan. The first consultation is free, and you’ll leave knowing how each debt option works and what it will cost.
You can check any trustee’s licence, including ours, on the OSB website before you commit to anything.
Meet our Alberta Licensed Insolvency Trustee
Robert Johnson is a Licensed Insolvency Trustee (LIT) with Moses Advisory Group Inc. He has over 20 years experience and has helped thousands in Alberta get back on their feet through consumer proposals, bankruptcy and his advice.
Robert is licensed by the Office of the Superintendent of Bankruptcy and is a member of CAIRP, the Canadian Association of Insolvency and Restructuring Professionals.
“Money worries wear people down. My job is to listen, lay out every option in plain terms, and help you pick the one that protects your home, your income and your peace of mind.”
Robert Johnson, CPA, CA, CIRP, Licensed Insolvency Trustee
Call us on 1-587-701-5681
Areas
Debt help across Alberta
Our Licensed Insolvency Trustees proudly serve all of Alberta.
Edmonton
Serving Edmonton, Sherwood Park, St. Albert and Leduc
Red Deer
Serving Red Deer
and Central Alberta
Lethbridge
Serving Lethbridge and Southern Alberta
Fort McMurray
Serving Fort McMurray and Wood Buffalo
Grande Prairie
Serving Grande Prairie and Peace Country
Call us on 1-587-701-5681
Takes 30 seconds.
Reviews
Trusted by Canadians
Real reviews from real clients.
I had a wonderful experience with the Moses Advisory team, especially Janelle. She was kind, supportive, and made the entire process so much easier. I feel at ease and like a huge weight has been lifted off my shoulders.
Soheila Adelian
Nikolas was very kind, helpful and respectful. He explained very clearly and answers all the question politely. He is very professional and you can feel his empathy, sincerity and willing to help. Highly recommended.
Jaime Torres
The Moses Advisory Group team has been excellent. Professional and knowledgeable guidance. Great help in explaining the process and providing the necessary support. Recommend to anyone having financial issues to take advantage of their expertise.
Oluwaseun Fanawopo
Excellent! I was heavily in debt and extremely stressed out, but after the first consultation, they made a very affordable proposal for me. Since that day, my financial situation has improved tremendously! I would highly recommend them to anyone who is suffering from heavy financial difficulties.
Kashaija Stephen
Thanks to Neil from Moses Advisory Group for all your help. I appreciate all your help and understanding through what has been a difficult time. I would highly recommend them.
Candice Knight
Working with this group is great and they helped me greatly. Highly recommend for those with financial problems. Great job guys and thank you so much for all your help.
May Niegos
I’m very glad that this company was able to give us a lifeline during our financial problems. I’m very grateful for all the support especially to Niko who has helped and guided me along the way. I appreciate your support and very kind excellent service. Thank you all and more power to your company!
Jun Abanilla
Excellent service. Professional advice. Anyone who has financial questions and concerns will benefit from visiting their office. What a great experience. Thank you! Thank you!
Isabel Choconta
I’m very happy with Moses. The staff was very helpful, explained things well and are very knowledgable. They always answer the phone when I call or return phone call the same day. I am very thankful for them.
Rory Balchan
More reviews
How it works
How to get debt relief in Alberta
Begin with a free consultation. A Licensed Insolvency Trustee will evaluate your income, debts, and assets before recommending the best debt solution for your circumstances.
Check if you qualify
Answer a few quick questions
You’ll get a call back
We explain how it works
Discover your options
We’ll create a plan for your debt
Take the first step toward becoming debt free.
No in-person visit needed.
FAQs
Alberta debt relief FAQs
There are five main options: a debt consolidation loan, debt management plan through credit counselling, Alberta’s Orderly Payment of Debts programme, consumer proposal or bankruptcy.
Advice is free, but debt solutions cost money. Your first consultation with a Licensed Insolvency Trustee is free and there’s no obligation to proceed. Non-profit credit counselling assessments are also free. Be cautious of any company charging an upfront fee.
Some do. A consumer proposal, bankruptcy, and Orderly Payment of Debts all allow for a stay of proceedings that stops wage garnishments and collection calls. A consolidation loan or debt management plan won’t stop a wage garnishment.
All debt relief solutions will affect your credit in some way. A consumer proposal shows as an R7 and drops off three years after you finish paying. Bankruptcy shows as an R9 and stays six years after discharge with Equifax, and seven with TransUnion. A debt management plan also shows on your file.
Bear in mind that if you’re considering these options, you may already have a low credit score due to missed payments and collections.
A legally binding offer to your creditors to repay part of what you owe, filed through a Licensed Insolvency Trustee. You pay a fixed monthly amount over up to five years, keep your assets, and the remaining balance is forgiven. Read more about consumer proposals.
Unsecured debts, including credit cards, lines of credit, payday loans, overdrafts, and CRA tax debt, up to a total of $250,000 excluding the mortgage on your principal residence. Secured debts like your mortgage or car loan are not eliminated in a consumer proposal.
You need to owe less than $250,000 in unsecured debt excluding your mortgage, be unable to repay your debts in full, but have enough income to make a monthly payment. A Licensed Insolvency Trustee will determine if you qualify.
Bankruptcy is a legal process that clears most unsecured debt, filed through a Licensed Insolvency Trustee. A first-time bankruptcy with no surplus income lasts for nine months. You give up any non-exempt assets and pay surplus income if you earn above the government threshold.
There is no government grant or forgiveness program that pays off consumer debt. However, federal law lets you eliminate debt through a consumer proposal, bankruptcy, or the Orderly Payment of Debts program. These are formal, government-regulated solutions.
Student loan debt forgiveness is offered to health and social service workers in small communities through provincial student loan forgiveness programs and grants. You can also get help with your student loan payments through the Repayment Assistance Program (RAP) offered by the federal government.