2025-11-20
Understanding what debt collectors can and cannot do
Debt Solutions
Understanding your rights as a consumer can help protect you when dealing with creditors and debt collection agencies.
What is an Informal Debt Settlement?
An informal debt settlement of debts is essentially a voluntary proposal between you and your creditors without judicial surety or the step by step support that comes from working with a licensed trustee. Your creditors have no legal obligation to work with you in order to develop an agreement and may terminate such agreement in the short term or without notice if it is not properly recorded in a legally binding document.
How an Informal Debt Settlement Works
To determine an informal debt settlement, you will first have to communicate directly with each of your creditors to negotiate a repayment plan that both fit your budget and that respect their repayment terms. Each creditor will want to negotiate the interest rates, payment amounts and the repayment schedule. You will then be responsible for the payment obligations under the terms of the voluntary agreement. The higher the amount of creditors is, the more difficult it can be to reach multiple agreements that will be financially manageable when all put together.
Deciding on an Informal Debt Settlement
Depending on your number of creditors and total amount owing in debt, an informal debt settlement might be a feasible option for you. If you are unsure about the risks associated with making an agreement that could have you juggling multiple payments and interest rates, with no legally binding paperwork to protect those agreements in the long term, there are other options available to you.
Frederic Lachance
Vice-président principal, SAI
Senior Vice-President
Servicing: Longueuil (Longueuil metro), Alma, Amos, Becancour, Beloeil , Berthierville, Chicoutimi, Châteauguay, Cowansville, Farnham , Gaspé, Granby , Hochelaga, Joliette, Sainte-Agathe, Laval, Lévis, Matane, Montréal, Pointe-aux-Trembles, Pointe-Claire, Repentigny, Rimouski, Rouyn-Noranda, Saint-Georges, Saint-Hyacinthe, Saint-Laurent, Sainte-Thérèse, Sept-Îles, Shawinigan, Sherbrooke, Sorel-Tracy , St-Félicien, Ste-Foy, Terrebonne , Thetford Mines, Trois-Pistoles, Trois-Rivières, Val-d'Or
Latest Blog Posts
2025-11-13
Stigma of Debt: Your Questions Answered
Debt Solutions
Many may feel ashamed, embarrassed and completely overwhelmed about their debt. People experiencing debt-related stress often suffer from many associated health issues, such as sleepless nights, headaches, tension and more. And feeling out of control when it comes to managing their debt payments often prevents people from taking control of their financial situation. Not all debt results from overspending, living beyond one’s means, frivolous behavior or money mismanagement. To answer your questions about the stigma of debt, and to learn about the options available to you, tune into our Stigma of Debt VLOG series below with MNP's Licensed Insolvency Trustees.
2025-11-05
What should you do when the Canada Revenue Agency calls?
Debt Solutions
Unexpected tax debt can be a daunting prospect. How can you confirm the CRA is really calling you — and pay back what you owe?
