• 120 Matheson Blvd East Unit 202 Mississauga, ON L4Z 1X1
  • Phone : +905 896 9991
  • Email : info@easychoicedebtfree.com
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FAQs

Home – FAQs

Yes — but usually less than people expect, and often less than continuing to struggle
with debt.

  • A Consumer Proposal affects your credit rating, but it is less severe than
    bankruptcy
  • Many clients already have damaged credit due to missed payments
  • Once the proposal is completed, you can start rebuilding credit immediately
  • Most people recover faster than they think

👉 The goal is financial recovery, not perfect credit during a crisis.

No — your employer is not notified.

  • Consumer Proposals and most debt solutions are private
  • Employers are only involved if there is an active wage garnishment
  • Once a legal solution is filed, wage garnishments stop immediately
  • Your job and reputation are protected

Once a Consumer Proposal or Bankruptcy is filed, CRA must stop all collection actions. This includes:

  • Wage garnishments
  • Bank account freezes
  • Collection calls
  • legal action

CRA becomes just another creditor under Canadian law

Consumer Proposal

  • You repay a portion of your debt
  • Keep assets
  • Lower monthly payments
  • Better credit recovery

Bankruptcy

  • No repayment to creditors (in some cases)
  • Possible loss of assets
  • Higher impact on credit
  • Used when income is very limited

👉We always review both options and recommend what’s best for you, not what’s
easiest.

Yes — CRA has the legal power to:

  • Freeze personal and business bank accounts
  • Take funds without court approval
  • Continue collection until stopped legally

A Consumer Proposal or Bankruptcy immediately stops this power

No — your spouse is not affected unless:

  • They co-signed a loan
  • They are jointly liable on the debt

Your spouse’s:

  • Credit
  • Income
  • Assets

remain protected in most cases.

No — a Consumer Proposal is NOT bankruptcy.

  • You keep your assets (house, car, RRSPs)
  •  You pay back a portion of your debt
  • One affordable monthly payment
  • No interest
  • Less impact on credit than bankruptcy

Bankruptcy is only considered if a proposal is not suitable.

The only legal way to stop a CRA wage garnishment immediately is to file:

  • A Consumer Proposal, or
  • A Bankruptcy

Once filed:

  • Garnishment stops the same day
  • CRA must notify your employer to stop deductions
  • You regain control of your income

Ignoring CRA will not stop garnishment — legal action will.

A Consumer Proposal allows you to combine most unsecured debts into one affordable
monthly payment, with no interest.

Debts that CAN be included

✅ Credit card debt

  • Visa, MasterCard, American Express
  • Retail store cards

✅ Personal loans & lines of credit

  • Bank loans
  • Payday loans
  • Installment loans

✅ CRA (Canada Revenue Agency) debt

  • Personal income tax
  • GST/HST
  • Payroll source deductions
  • Interest and penalties

✅ Payday loans & cash advances
✅ Unsecured business debt

  • Business credit cards
  • CEBA loans (in many cases)
  • Personally guaranteed business loans

✅ Collections, lawsuits & judgments

  • Debts already sent to collections
  • Court judgments
  • Legal action in progress

✅ Wage garnishments & CRA enforcement

  • Garnishments stop immediately once filed

❌ Secured debts

  • Mortgages
  • Car loans (unless you choose to surrender the asset)

❌ Child support & spousal support arrears
❌ Court fines & penalties
❌ Student loans

  • If less than 7 years since leaving school
  • (May be included if over 7 years — case dependent)
  • All interest stops
  • Collection calls stop
  • CRA enforcement stops
  • One affordable monthly

payment replaces multiple debts

No — with a Consumer Proposal:

  • You keep your home
  • You keep your vehicle
  • You keep your RRSPs
  • No asset seizure