Insolvency

Couple sitting on the couch, reviewing their finances and debts.

Get a Free

initial confidential consultation

An MNP Debt Advisor will contact you within 1 business day.

Step 1 of 2

This input is required.

This input is required.

Preferred method of contactRequired*

Phone or Email field is required.

This input is required.

Please enter a valid phone number.

Best time to callRequired*

Please enter a valid email.

*Required Fields

By completing this form, you understand and agree to the collection, use and disclosure of personal information in accordance with MNP Ltd.'s Privacy Policy.

Next Step chevron_right

Step 2 of 2

This input is required.

Please select a province

This input is required.

Please select a city

*Required Fields

By completing this form, you understand and agree to the collection, use and disclosure of personal information in accordance with MNP Ltd.'s Privacy Policy.

Find your local MNP office
Please select a province

This input is required.

Please select a city

This input is required.

Jump to Section:

What is insolvency?

Insolvency refers to a financial state where an individual (or business) can no longer meet their debt obligations. This typically happens when liabilities exceed assets, meaning you owe more than you own and are unable to pay your debts on time.

Insolvency can affect both your credit rating and your ability to obtain future loans, leading to increased financial stress. However, insolvency is not the end. There are several legal and financial pathways to manage insolvency, such as debt consolidation, consumer proposals, or filing for bankruptcy. These solutions offer a structured way to regain control over your finances, allowing you to either reduce or eliminate your debts over time while protecting yourself from creditor actions like lawsuits and wage garnishments.

How to tell if you’re insolvent

Determining whether you're insolvent is a case of assessing your financial situation. Key indicators include:

  • You’re unable to pay your debts when they’re due.
  • Your total debts exceed the value of your assets.
  • You rely heavily on credit cards or loans to cover daily expenses.
  • You’ve received calls from collection agencies.
  • You consistently miss bill payments or only make minimum payments on your debts.

If any of these issues apply to you, it may be time to consult with a Licensed Insolvency Trustee at your local MNP LTD office. We can help you evaluate your options and develop a strategy to overcome your financial challenges.

How to become solvent again

Becoming solvent again means taking control of your debt and financial situation. There are several options to help you achieve this, depending on your unique circumstances. Some approaches provide immediate relief, while others offer long-term solutions for debt repayment.

It’s important to choose the right method for your situation and seek guidance from a Licensed Insolvency Trustee or financial professional to explore your options, whether it’s through a legal process like bankruptcy or a financial strategy like debt consolidation.

Consumer Proposal

If you’re struggling with debt but also have assets you wish to keep, a consumer proposal might be the life-changing debt solution you’re looking for.

View Consumer Proposal

Debt consolidation

You may be able to combine multiple debts into one overall loan—provided by your bank or financial institution—to make budgeting for repayment easier.

View Debt Consolidation

Bankruptcy

Bankruptcy is a legal process that provides immediate relief from your unsecured debts, such as credit card debt, but it’s not necessarily an all-encompassing solution.

View Personal Bankruptcy

Insolvency FAQs

View All Insolvency FAQs arrow_forward

Explore our insolvency blog articles

2025-03-05

Two in five Newfoundland and Labradorians fear they may never be debt-free, acknowledge needing help, but are too embarrassed to seek it out

Greg Gosse

MNP Consumer Debt Index Lifestyle Debt Debt Solutions

According to a new survey conducted by Ipsos on behalf of MNP LTD, two in five Atlantic Canadians acknowledge they need help to get out of debt (43%).

Read More

2025-03-05

Two in five New Brunswickers fear they may never be debt-free, acknowledge needing help, but are too embarrassed to seek it out

Tara Silliker

MNP Consumer Debt Index Lifestyle Debt Debt Solutions

According to a new survey conducted by Ipsos on behalf of MNP LTD, two in five Atlantic Canadians acknowledge they need help to get out of debt (43%).

Read More

2025-03-05

About one-third of Saskatchewan and Manitoba residents fear they may never be debt-free; acknowledge needing help, but two in five are too embarrassed to seek it

Pamela Meger

MNP Consumer Debt Index Lifestyle Debt Debt Solutions

According to a new survey conducted by Ipsos on behalf of MNP LTD, three in 10 (29%) Saskatchewan and Manitoba residents acknowledge they need help to get out of debt. 

Read More

Consultation icon