Are you in debt?
Are you struggling to make your minimum payments?
Is compounding interest making it impossible to pay the debt off?
Would you like to be debt free?
We can help.
Your Questions Answered
General Questions
Step 1: We have a free, no obligation consultation with you to explain who we are and what we do. We gather basic information so we can assess your situation to see what options are available.
Step 2: We get back to you with the options that are available to you with a complete explanation so you can make the right decision for yourself.
Step 3: We will ask you to send documents to substantiate the information you gave us on the initial consultation and then once received will confirm the options for you.
Step 4: Once you have made your decision, you choose how to proceed.
Step 5: If you decide to speak with a Licensed Insolvency Trustee, you contact them directly and they handle all required documents with you.
Step 6: Our Financial Literacy Service is optional and available after any debt process is complete. If you choose to enroll, an Aftercare Agreement will be sent to you to sign, followed by a secure, private enrollment link and access codes for your credit bureaus.
Step 7: You will, at your convenience, go through the Financial Literacy Program knowing that your FSDS advisor is available for questions and support.
You are free to choose any Licensed Insolvency Trustee. A directory of all LITs is available from the Office of the Superintendent of Bankruptcy.
A Licensed Insolvency Trustee administers a consumer proposal or bankruptcy and acts for the estate as a whole, including you and your creditors. FSDS is not part of that proceeding. Our services, such as financial education and credit rebuilding support, are separate and optional.
Unsecured debts (debts not attached to an asset) can be included. Examples include credit card debt, unsecured lines of credit, utility bills, bank overdrafts, unsecured loans, medical bills, student loans, unpaid taxes to CRA, and personal loans from banks, credit unions, and other lenders.
Yes, student loans can be included. If you have been out of school for seven years or more, it will be treated as normal unsecured debt. If you have been out of school for less than seven years, a portion of your payments will go to your student loan, and you will need to pay off the remaining balance after a consumer proposal.
Under the Bankruptcy and Insolvency Act, once a Licensed Insolvency Trustee files a consumer proposal, creditors included in it must stop collection actions on those debts. FSDS does not file proposals or administer this process.
No. A consumer proposal is filed in your name only, and your spouse does not need to take part. Any debts you share or that your spouse co-signed may still be pursued against them, so ask a Licensed Insolvency Trustee how your situation applies.
A consumer proposal covers only debts in your name, so debts that are solely yours are not your spouse’s responsibility. Any debts you share or that your spouse co-signed are different: creditors may still pursue your spouse for those. A Licensed Insolvency Trustee can explain how your situation applies.
You can easily find out how much you owe and to whom by signing up for Equifax or TransUnion free of charge and pulling your credit report. This will give you a clear picture of your debts.
Once a Licensed Insolvency Trustee files a consumer proposal and it is accepted, creditors included in it cannot pursue you for those debts as long as you meet its terms. This protection comes from the Bankruptcy and Insolvency Act and is administered by the LIT, not by FSDS.
How does First Step Debt Solutions help?
Once we have your documents, we can usually walk you through your options within a few days. Timelines for any consumer proposal are set by the Licensed Insolvency Trustee.
Our team helps you understand your options, gather and organize your information, build a budget, and, if you choose, work through our optional aftercare program to rebuild your credit. We do not negotiate with creditors or file proposals; only a Licensed Insolvency Trustee does that.
Creditors may accept a debt restructuring because it can cost them less than collections and gives them a set repayment amount. Each creditor decides whether to accept, so no particular result can be promised.
Credit Score and Credit Reports
A debt restructuring will impact your credit score, but with our tools and education, you can rebuild it. Our aftercare program provides resources to help you improve your credit score.
No, it won’t. A consumer proposal will stay on your credit report for up to five years. If you complete it on time, it will be removed from your credit report after one year. If you finish early, it could be removed within three years.
Yes, you can keep any credit card with a zero balance.
A low credit rating can be due to missed payments, high credit utilization, lack of credit history, or frequent hard inquiries. Our aftercare service will help you understand and improve your credit score.
Vehicles and Mortgages
It may be. Some lenders work with people who are in or have completed a consumer proposal. We can help you understand your financing options, but approval always depends on the lender and your finances.
Many clients come to us with high credit utilization or missed payments. Some people who complete a consumer proposal and rebuild their credit later qualify for a mortgage. Approval depends entirely on the lender and your finances. We cannot promise any credit or lending outcome.
No, a consumer proposal will not affect your current mortgage or vehicle financing. You will need to continue making payments on them.
We can help you understand your financing options. The rate you are offered depends on the lender and your finances.
First Step Debt Solutions Inc. is not a Licensed Insolvency Trustee and does not administer proceedings under the Bankruptcy and Insolvency Act. You do not need FSDS to file a consumer proposal or bankruptcy. You may contact any Licensed Insolvency Trustee directly, and an LIT’s initial consultation is free. FSDS charges a fee for its own advisory and aftercare services, disclosed before any agreement.