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Frequently Asked Questions
Clear answers about debt relief, Consumer Proposals, and Bankruptcy in Alberta.
Getting Started with SCB Debt Solutions
A Licensed Insolvency Trustee is a federally regulated professional who helps you understand the debt relief options available based on your financial situation. At SCB Debt Solutions, we bring 25+ years of experience helping Albertans understand their options and determine an appropriate path forward.
Unlike debt settlement companies or debt consultants, Licensed Insolvency Trustees are federally licensed and regulated professionals. LITs are authorized to administer formal insolvency proceedings, including Consumer Proposals and Bankruptcies. SCB Debt Solutions also maintains memberships with CAIRP, IWIRC, and AAIRP.
Yes, and that matters when you're trusting someone with your finances. SCB Debt Solutions is federally licensed and regulated under the Bankruptcy and Insolvency Act, with over 25 years of experience guiding Albertans through debt relief.
Yes, completely. We understand reaching out can feel like a big step, so there's no cost, no obligation, and no judgment. We'll simply listen, review your finances, and explain your options clearly.
We'll start by listening. Then we'll review your income, debts, and expenses together and walk through the legal options available, whether that's counselling, a Consumer Proposal, or Bankruptcy, or another approach. There's no pressure to decide anything right away.
Don't worry if you don't have everything organized. Recent pay stubs, a list of debts, and bank statements help, but if paperwork feels overwhelming right now, we can work with what you have and fill in gaps together.
You'll work directly with a Licensed Insolvency Trustee. Backed by SCB's 25+ years in Alberta and memberships with CAIRP, IWIRC, and AAIRP, our team treats every client relationship with care and professionalism.
Whatever feels most comfortable for you works. We offer both online and in-person consultations, and many clients complete their entire process remotely, without ever needing to step into an office.
Yes, wherever you are in Alberta. While we're based in Calgary, we support clients across the province, including Edmonton and Airdrie, through virtual appointments, phone calls, and secure document sharing.
Your privacy matters to us. Your consultation is confidential, and there's no requirement to tell your employer. Depending on the path you choose, some formal notice to creditors is always required, and we'll walk you through exactly what that means.
Consumer Proposals
A Consumer Proposal is a formal, legally binding process administered by a Licensed Insolvency Trustee. It allows you to make an offer to your unsecured creditors to repay a portion of what you owe, extend the time available to repay it, or both. Once filed, it also provides legal protection from most collection action by unsecured creditors.
Both are federally regulated debt relief options, but they work differently. With a Consumer Proposal, you generally keep your assets while making agreed payments to your creditors. In Bankruptcy, certain non-exempt assets may need to be surrendered, and your obligations can also depend on factors such as your income and whether you've previously filed for Bankruptcy.
In a Consumer Proposal, you generally keep your assets. If your home or vehicle is financed, you'll need to continue making the required payments to the secured lender. Your Licensed Insolvency Trustee can review your specific assets and financing arrangements with you before you file.
There's no one-size-fits-all amount. Your Consumer Proposal is developed based on your overall financial situation, including your income, expenses, debts, assets, and what may be acceptable to your creditors. Your Licensed Insolvency Trustee will review these factors with you and help structure a proposal you can realistically maintain.
A Consumer Proposal can run up to five years, though many clients finish sooner than that. Your Licensed Insolvency Trustee will lay out a clear, honest timeline before you commit to anything.
Yes. A Consumer Proposal can generally be paid off earlier than scheduled without a penalty. You can make additional or lump-sum payments toward the agreed proposal amount, which may allow you to complete the proposal sooner.
Missing a payment doesn't necessarily end your Consumer Proposal, but it's important to contact your Licensed Insolvency Trustee as soon as possible. If you're making monthly payments and fall behind by an amount equal to three payments, your proposal may be deemed annulled. Your trustee can explain the options available if you're having difficulty keeping up with payments.
Bankruptcy
Bankruptcy is a federally regulated legal process, guided by a Licensed Insolvency Trustee, that can discharge most unsecured debt in exchange for surrendering certain assets and meeting a few defined duties, giving you a genuine fresh start.
No, and this worry is more common than you'd think. Alberta law protects many essential assets, including basic household items and some equity in your home and vehicle. We'll explain exactly what's protected in your case.
A first bankruptcy typically lasts nine months if you have no surplus income, or 21 months if you do. Your Licensed Insolvency Trustee will give you a clear, honest timeline for your specific situation.
Often, yes, depending on the equity involved and Alberta's exemption limits. We'll review your assets carefully during your consultation and give you a straightforward answer about what you can expect to keep.
A second Bankruptcy generally lasts longer than a first. If you're eligible for an automatic discharge, a second Bankruptcy typically lasts 24 months without a surplus income payment obligation or 36 months with one. Your Licensed Insolvency Trustee will explain how your previous filing affects your specific situation.
Your duties are manageable and clearly explained upfront: attending credit counselling sessions, reporting income monthly, and staying in touch with your trustee. Meeting them consistently is what leads you to your discharge from debt.
Types of Debt We Help With
Yes, and you're not alone in facing this. Personal income tax debt can often be included in a Consumer Proposal or Bankruptcy. Filing typically triggers a stay of proceedings that stops most CRA collection action on debts covered by the filing, while interest on those included unsecured debts generally stops accumulating.
Yes, and often quickly. Filing either option generally triggers a stay of proceedings, which typically stops wage garnishment and most other collection action, giving you real legal breathing room while your plan moves forward.
Yes, and for many clients, this relief comes as a huge weight off their shoulders. Once a Consumer Proposal or Bankruptcy is filed, the stay of proceedings generally requires unsecured creditors included in the filing to stop collection calls, letters, wage garnishment, and most legal collection action.
Most unsecured debt qualifies, including credit cards, personal loans, lines of credit, payday loans, and certain CRA tax debt. We'll take the time to review your full picture and confirm what applies to you.
Yes. Certain debts may survive a Consumer Proposal or Bankruptcy, including child or spousal support obligations, certain court-imposed debts, and student loans when the applicable waiting period has not been met. Secured debts, such as a mortgage or vehicle loan, are also treated differently because they are tied to specific assets. Your Licensed Insolvency Trustee will review each debt with you and explain how it would be treated.
Absolutely, this is some of the most common debt we help resolve. Credit card balances and personal loans are frequently included in a Consumer Proposal or Bankruptcy, and we've guided many Albertans through exactly this.
That's completely manageable. Insolvency proceedings generally follow your current province of residence, so debt from elsewhere in Canada can typically still be included. We'll sort out the details together during your consultation.
Moving to another province generally doesn't cancel an existing Consumer Proposal or Bankruptcy. You should inform your Licensed Insolvency Trustee of the move so they can update your information and advise you of any administrative requirements that may apply.
Credit, Costs, and Life After Debt
Your initial consultation with SCB Debt Solutions is free. The cost of a Consumer Proposal or Bankruptcy depends on the option and your individual circumstances. In a Consumer Proposal, administration costs are paid from the agreed proposal payments rather than charged separately to creditors. Bankruptcy costs and required payments can vary depending on factors such as your income and assets. We'll explain all applicable costs before you proceed.
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A Consumer Proposal or Bankruptcy will affect your credit profile and will be reported to the credit bureaus. The impact on your individual credit score varies depending on your credit history and other factors. Once the process is underway, you can begin taking steps toward rebuilding your credit over time.
How long a Consumer Proposal or Bankruptcy appears on your credit report can depend on the type of filing, when it was completed or discharged, the credit bureau, and whether you've filed previously. Your Licensed Insolvency Trustee can explain the general reporting timelines, and you can confirm your current credit file directly with Canada's major credit bureaus.
Rebuilding credit takes time, but there are practical steps you can take after filing. These can include making payments on time, keeping your budget manageable, reviewing your credit reports for accuracy, and using new credit carefully. A secured credit card may also be an option when appropriate.
A Consumer Proposal or Bankruptcy doesn't permanently prevent you from borrowing again. Future approval for a mortgage or other loan will depend on factors such as your income, credit history, down payment, debt levels, the time since completing your proposal or receiving your discharge, and the lender's requirements. Rebuilding your credit gradually can help strengthen future applications.
No, taking this first step won't cost you anything. Your initial consultation is completely free, with no upfront cost to begin exploring your options with a Licensed Insolvency Trustee at SCB Debt Solutions.
Reaching out is often the hardest part, and we're glad to make it easy. Book a free, confidential consultation with SCB Debt Solutions, and let our 25+ years of experience guide you toward a clear path forward.