Articles & Insights – Spergel

How to remove collections from your credit report in Canada (2026)

Gillian Goldblatt — Wed, 17 Jun 2026 18:05:15 +0000

Unfortunately, missed payments can eventually lead to your account being sent to a collection agency, resulting in a collection account appearing on your credit report. This can impact your credit score and make it harder to qualify for loans, mortgages, or other forms of credit.

If you’re wondering how to remove collections from your credit report in Canada, you’re not alone. At Spergel, we regularly help Canadians understand their credit reports, deal with collection agencies, and create a plan to improve their financial situation.

In this guide, we’ll explain how collections affect your credit score, whether collection accounts can be removed, and what steps you can take to rebuild your credit.

What is a collection account?

A collection account appears on your credit report when a creditor believes a debt is unlikely to be repaid and transfers or sells the account to a collection agency.

Collection accounts can arise from many types of debt, including:

Credit cards
Personal loans
Lines of credit
Utility bills
Cell phone contracts
Auto loans
Unpaid medical expenses
Mortgage shortfalls

Once an account enters collections, it is typically reported to Canada’s major credit bureaus, Equifax and TransUnion.

How does a collection entry affect your credit score?

A collection account is considered a serious negative item on your credit report.

Having an account in collections may:

Lower your credit score
Make it more difficult to qualify for new credit
Impact mortgage approvals
Result in higher interest rates from lenders
Raise concerns for landlords or other organizations that review credit reports

While the impact lessens over time, collection accounts can continue affecting your ability to borrow money for several years.

Can you remove collections from your credit report in Canada?

The answer depends on the circumstances.

You may be able to remove a collection account if:

The information is incorrect
The debt does not belong to you
The account is being reported inaccurately
The collection entry should have already been removed
The credit bureau determines the information cannot be verified

If, however, the collection account is accurate, it may remain on your credit report for the period allowed by the credit bureau’s reporting rules.

Step 1: Review your credit report carefully

The first step is obtaining a copy of your credit report from both Equifax and TransUnion.

Review your report carefully and look for:

Collection accounts
Incorrect balances
Duplicate accounts
Accounts that do not belong to you
Incorrect dates
Outdated information

Errors on credit reports are more common than many people realize. If you identify any inaccuracies, gather supporting documentation and prepare to dispute them.

Step 2: Dispute incorrect collection accounts

If you believe a collection account is inaccurate, you can file a dispute directly with the credit bureau reporting the information.

You may need to provide:

Government-issued identification
Proof of payment
Account statements
Correspondence from creditors
Supporting financial records

The credit bureau will investigate the dispute and contact the creditor or collection agency to verify the information.

If the information cannot be verified or is determined to be inaccurate, it may be removed or corrected.

Step 3: Check whether the collection account should have expired

Collection accounts do not remain on your credit report forever.

In most provinces, collection accounts generally remain on your credit report for up to six years, although reporting periods can vary depending on the province and credit bureau.

If you discover a collection account that should no longer appear on your report, you can contact the credit bureau and request an investigation.

Be sure to keep copies of all correspondence and documentation.

Step 4: Resolve outstanding debts

Paying or settling a collection account will not automatically remove it from your credit report.

However, resolving the debt may:

Stop collection activity
Prevent further legal action
Improve your overall financial profile
Demonstrate responsible financial behaviour to future lenders

Even after a debt is paid, the collection entry may continue to appear on your credit report until the reporting period expires.

Can you pay to remove a collection account?

Some Canadians ask whether they can negotiate with a collection agency to remove a collection account after payment.

While you may hear this referred to as “pay for delete,” it is not a common or guaranteed practice in Canada.

Collection agencies and creditors are generally expected to report accurate information. As a result, they are under no obligation to remove a legitimate collection account simply because the debt has been paid.

How to rebuild your credit after collections

If you’ve had an account in collections, rebuilding your credit should become a priority.

Some of the most effective ways to improve your credit score include:

Paying bills on time

Payment history is one of the most important factors affecting your credit score.

Keeping credit utilization low

Aim to use less than 30% of your available credit limit whenever possible.

Consider a secured credit card

A secured credit card can help you rebuild positive credit history while reducing risk to lenders.

Avoid multiple credit applications

Submitting several credit applications in a short period may negatively impact your score.

Monitor your credit report

Review your credit report regularly to ensure all information remains accurate.

A real client story: How Samantha stopped collection calls

Samantha, a working mother from British Columbia, found herself overwhelmed by credit card debt, a personal loan, and a growing line of credit. As her debt increased, collection calls became a constant source of stress and her financial situation felt increasingly difficult to manage.

After speaking with Spergel, Samantha filed a consumer proposal that reduced her debt, stopped collection activity, froze interest charges, and allowed her to keep her home. While rebuilding her credit would take time, resolving the debt behind the collection accounts gave her the fresh start she needed.

Samantha’s story highlights an important lesson: improving your credit often starts with addressing the underlying debt problem.

Read Samantha’s full story here.

Can a Licensed Insolvency Trustee remove collections from your credit report?

A Licensed Insolvency Trustee cannot directly remove accurate collection accounts from your credit report.

However, a Licensed Insolvency Trustee can:

Review your credit report
Identify reporting errors
Explain your rights
Help you deal with collection agencies
Provide guidance on rebuilding your credit
Explore debt relief solutions such as a consumer proposal or bankruptcy if needed

If collection accounts are the result of larger debt problems, addressing the underlying financial situation is often the most important step.

Frequently Asked Questions

How long do collections stay on your credit report in Canada?

In most cases, collection accounts can remain on your credit report for approximately six years, although reporting periods may vary by province and credit bureau.

Will paying a collection account improve my credit score?

Paying a collection account may help your overall financial profile and prevent further collection activity, but the collection entry may still remain on your credit report for the applicable reporting period.

Can I remove a paid collection from my credit report?

A paid collection may only be removed if it is inaccurate, outdated, or cannot be verified. Paying a debt does not automatically remove the collection entry.

What happens if a collection account isn’t mine?

You should immediately dispute the account with the credit bureau and provide supporting documentation. If the information is incorrect, it may be removed.

Can a collection agency sue me?

Collection agencies may pursue legal action in certain circumstances, subject to provincial laws and limitation periods. If you have concerns about collection activity, speaking with a Licensed Insolvency Trustee can help you understand your options.

Need help with collection accounts or debt problems?

If a collection account is affecting your credit score, mortgage approval, or financial goals, you don’t have to navigate it alone.

At Spergel, our Licensed Insolvency Trustees have helped more than 100,000 Canadians understand their debt, improve their financial situation, and move toward a brighter financial future.

Book a free, confidential consultation today and learn about the options available to you.

How to save money on groceries in Canada: 10 practical tips

Alan Spergel — Thu, 11 Jun 2026 15:49:44 +0000

With grocery prices remaining one of the biggest financial pressures facing Canadian households, many families are looking for ways to make their food budget go further.

According to the Canada Food Price Report, the average family of four is expected to spend more than $17,571.79 annually on food, making groceries one of the largest household expenses after housing and transportation.

The good news is that you don’t need to make drastic lifestyle changes to reduce your grocery bill. Small changes to how you shop, plan meals, and take advantage of discounts can add up to hundreds – or even thousands – of dollars in savings each year.

Whether you’re trying to stretch your budget, pay down debt, or simply get more value from your weekly shop, these practical grocery-saving tips can help.

Quick ways to save money on groceries

If you’re looking for the fastest ways to reduce your grocery bill, start with:

Planning meals before shopping
Buying items that are on sale
Using cashback apps
Joining loyalty programs
Reducing food waste
Tracking your grocery spending

Why are groceries so expensive in Canada?

Food prices have risen significantly in recent years due to inflation, supply chain disruptions, labour shortages, and increased transportation costs. New data from Statistics Canada shows that food prices rose by 3.5% year-over-year in April 2026, although many grocery staples saw their prices increase by significantly more than that.

For many Canadians, groceries now represent one of the largest monthly household expenses after housing and transportation. According to a 2024 Leger survey, nearly half of Canadians report living paycheque to paycheque, making everyday savings opportunities more important than ever.

While some price increases are outside your control, how you shop can make a meaningful difference to your overall spending.

1. Plan your meals before you shop

One of the simplest ways to save money on groceries is to plan your meals before heading to the store.

Meal planning helps you:

Buy only what you need
Reduce impulse purchases
Avoid food waste
Use ingredients more efficiently

Before shopping, check what you already have in your fridge, freezer, and pantry and build your meal plan around those items.

Meal planning can also reduce food waste and limit expensive last-minute takeout orders. Even planning just four or five dinners in advance can help reduce unnecessary spending throughout the week.

2. Build your grocery list around flyer specials

Instead of deciding what you want to eat and then shopping for ingredients, start with the sales.

Apps such as Flipp allow you to compare grocery flyers from multiple stores in one place.

If chicken is on sale this week, consider building meals around chicken. If seasonal produce is heavily discounted, adjust your menu accordingly.

Shopping based on sales can significantly reduce your grocery costs over time.

3. Use cashback apps

Cashback apps provide money back on items you’re already purchasing.

Popular Canadian options include:

Checkout 51
Caddle
Eclipsa
Rakuten Canada

While individual savings may seem small, they can add up over the course of a year.

4. Join grocery store loyalty programs

Many Canadian grocery chains offer loyalty programs that provide discounts, rewards, and personalized offers.

Popular programs include:

PC Optimum
Scene+
Air Miles

These programs can help reduce your grocery costs while rewarding purchases you would have made anyway.

5. Try couponing

Couponing in Canada may not be as extreme as what you see on television, but it can still provide meaningful savings.

Digital coupons, cashback offers, store promotions, and manufacturer discounts can often be combined with existing sales.

Even saving just $20 per week through loyalty programs, coupons, cashback apps, and shopping sales can add up to more than $1,000 per year.

6. Compare unit prices

Larger packages aren’t always cheaper.

Compare the price per 100g, kilogram, litre, or item to determine which product offers the best value.

Many stores display unit pricing directly on shelf labels, making comparisons easier.

7. Reduce food waste

Throwing away food is essentially throwing away money. According to the National Zero Waste Council, $49 billion worth of food is sent to landfill or composted each year in Canada.

Simple ways to reduce food waste include:

Freezing leftovers
Properly storing produce
Planning meals around ingredients you already own
Using older items before buying new ones

Reducing food waste can have a surprisingly large impact on your grocery budget.

8. Buy generic or store brands

Many store-brand products offer similar quality to national brands at a lower price.

Products such as pasta, canned goods, dairy products, frozen vegetables, and pantry staples are often significantly cheaper when purchased under a store brand.

9. Take advantage of price matching

Some Canadian retailers allow customers to match competitors’ advertised prices.

Price matching can help you access the lowest prices without visiting multiple stores.

Before shopping, check your store’s current policy and keep flyers or screenshots readily available.

10. Track your grocery spending

You can’t improve what you don’t measure.

Tracking your grocery spending helps you:

Identify spending patterns
Set realistic grocery budgets
Measure progress over time
Spot opportunities to save

Using our free Groceries Budget Tracker can also help you determine whether your spending is increasing faster than expected.

A real client story: small changes can add up

When Mia went on maternity leave, her household income dropped significantly. Like many Canadians, she found herself looking for ways to reduce spending without sacrificing the things that mattered most.

One of her biggest expenses was regular nights out with friends. After speaking with a counsellor at Spergel, Mia and her friends swapped expensive restaurant outings for affordable dinners and gatherings at home. The change helped reduce costs while allowing everyone to stay connected.

Mia’s experience highlights an important lesson: small changes to everyday spending habits can add up over time and create more room in your budget.

Read Mia’s full story.

When saving on groceries isn’t enough

Finding ways to reduce your grocery bill can provide valuable financial relief, but sometimes the challenge goes beyond budgeting.

If you’re:

Using credit cards to buy groceries
Falling behind on bills
Struggling with debt payments
Receiving collection calls
Living paycheque to paycheque

it may be time to explore additional support.

At Spergel, our Licensed Insolvency Trustees have helped more than 100,000 Canadians understand their options, reduce overwhelming debt, and regain financial stability.

Frequently Asked Questions

How much should a Canadian spend on groceries each month?

The answer depends on household size, location, and dietary needs. However, groceries are one of the largest household expenses for many Canadians, making budgeting and meal planning increasingly important.

What is the easiest way to save money on groceries?

Meal planning, shopping sales, using loyalty programs, and reducing food waste are among the simplest and most effective ways to lower grocery costs.

Is couponing worth it in Canada?

Yes. While Canadian couponing opportunities are more limited than in the United States, coupons, cashback apps, and loyalty programs can still generate meaningful savings over time.

What are the best grocery savings apps in Canada?

Popular options include Flipp, Checkout 51, Caddle, Rakuten Canada, and store-specific loyalty apps such as PC Optimum and Scene+.

How can I cut my grocery bill in half?

While cutting your grocery bill in half may not be realistic for every household, strategies such as meal planning, reducing food waste, shopping sales, buying store brands, and using loyalty programs can significantly lower costs.

What is the cheapest grocery store in Canada?

Prices vary by location, but discount chains such as No Frills, FreshCo, Food Basics, and Giant Tiger are often considered among the most affordable grocery retailers in Canada.

Final thoughts

Learning how to save money on groceries in Canada isn’t about deprivation – it’s about shopping more strategically.

By combining meal planning, flyer shopping, loyalty programs, cashback apps, and smarter spending habits, you can reduce your grocery bill and free up room in your budget for the things that matter most.And if rising grocery costs are only part of a larger financial challenge, Spergel is here to help. Book a free consultation today to explore your options and take the next step toward financial stability.

How to leave a marriage with no money in Canada: a step-by-step guide to financial independence

Samantha Galea — Thu, 04 Jun 2026 13:45:26 +0000

Many Canadians stay in unhappy or unhealthy relationships longer than they want to because they’re worried about how they’ll afford housing, support their children, pay their bills, or manage existing debt on a single income.

Research shows that financial hardship after separation is common, particularly for lower-income households and individuals who were financially dependent on their partner.

While anyone can face financial challenges after a breakup, studies have found that women are more likely to experience a significant drop in income following separation. According to the Government of Canada, 5% of women report that a partner has prevented them from accessing a job, money, or other financial resources, while many others experience forms of economic abuse that make it difficult to leave a relationship safely.

The good news is that leaving a marriage with no money is possible. There are legal protections, government benefits, community resources, and financial support programs designed to help people rebuild their lives after separation or divorce.

Whether you’re financially dependent on your spouse, dealing with joint debt, experiencing financial abuse, or simply unsure where to start, this guide will help you understand your options and take practical steps toward financial independence.

Key Takeaways

You can leave a marriage even if you have little or no money.
You may be entitled to spousal support, child support, or a share of marital assets.
Government assistance and community support may be available.
Joint debt can continue to affect you after separation.
Financial abuse is a common barrier to leaving a relationship.
Building a financial plan early can make the transition easier.

How to leave a marriage with no money

Here are some recommended steps to take if you’re planning to leave a marriage while in a compromising financial situation.

1. Take stock of your financial situation

Before making any decisions, it’s crucial to get a clear picture of your finances. This step involves gathering information about your income, debts, assets, and monthly expenses. While it may feel overwhelming, understanding your financial situation will help you make more informed decisions about how to proceed.

List all sources of income: whether from your job, government benefits, or spousal support.
Assess your debts: include any personal loans, credit card debt, or joint financial obligations.
Identify joint assets: consider properties, savings, pensions, or investments shared with your spouse.

Having this information will help you figure out what you’ll need financially to make the transition.

2. Understand your legal rights

Many people delay leaving a marriage because they assume they cannot afford legal help. However, free consultations, legal aid programs, and family law clinics may be available depending on your situation.

You may be entitled to:

Spousal support (alimony)
Child support
A share of marital assets
Pension entitlements
Equalization payments

Understanding your rights can significantly improve your financial position after separation.

3. Open a personal bank account

If you don’t already have one, open a bank account in your own name.

Having a separate account can help you:

Build financial independence
Receive income or benefits
Create an emergency fund
Track your own expenses

Even small savings can make a meaningful difference during a transition period.

4. Create a financial plan

A realistic financial plan can help reduce uncertainty and stress.

Consider:

Housing costs
Utilities
Groceries
Transportation
Childcare
Insurance
Debt payments

Building an emergency fund may feel difficult, but it is important. According to the Financial Consumer Agency of Canada, more than half of Canadians do not regularly save for unexpected expenses.

What if your spouse controls all the money?

Financial abuse is one of the most overlooked barriers to leaving a marriage.

Financial abuse can include:

Restricting access to bank accounts
Monitoring spending
Preventing a spouse from working
Withholding financial information
Controlling household finances
Accumulating debt in a partner’s name

If any of these situations sound familiar, know that support is available.

Family lawyers, shelters, domestic violence organizations, and community agencies can help you develop a safe plan to leave.

What happens to debt during a separation or divorce?

Debt is often one of the biggest concerns for people leaving a marriage.

Many Canadians assume that debt is automatically divided when a marriage ends. Unfortunately, it is not always that simple.

Joint debts such as:

Credit cards
Lines of credit
Car loans
Personal loans
Mortgages

may remain the responsibility of both borrowers, regardless of what a separation agreement says.

If your name remains attached to a debt, a lender may still pursue you for repayment.

Expert insight from a Licensed Insolvency Trustee

“Many people assume debt is automatically divided when a marriage ends, but creditors don’t necessarily follow separation agreements. If your name remains on a joint debt, you may still be legally responsible for repayment.”

– Samantha Galea, Licensed Insolvency Trustee

If debt is becoming overwhelming, speaking with a Licensed Insolvency Trustee can help you understand your options.

Financial help available after separation in Canada

Depending on your circumstances, you may qualify for financial support.

Potential sources of assistance include:

Canada Child Benefit (CCB)
GST/HST Credit
Employment Insurance (EI)
Provincial income assistance programs
Housing support programs
Child support payments
Spousal support payments

Community resources such as food banks, shelters, counselling services, and employment programs may also provide valuable support.

Secure your important documents

Before leaving, gather copies of important documents whenever possible.

These may include:

Passport
Driver’s licence
Birth certificate
Social Insurance Number (SIN)
Tax returns
Bank statements
Mortgage documents
Insurance policies
Pension statements
Marriage certificate

Having these documents readily available can simplify legal and financial processes later.

Build a support network

Separation affects more than just your finances.

Friends, family members, counsellors, support groups, and financial professionals can all play an important role in helping you navigate this transition.

Research shows that many Canadians experience a significant decline in household income following a separation or divorce, making practical and emotional support especially valuable during the transition.

Consider employment and income opportunities

If you don’t currently have an income, finding employment or increasing your earning potential may become an important part of rebuilding financial independence.

Options may include:

Part-time employment
Remote work
Freelance opportunities
Skills training programs
Government employment services

The Financial Consumer Agency of Canada (FCAC) reports that one in seven Canadians often use credit to pay for basic necessities when they run short of money, underscoring the importance of creating stable income and a realistic budget after a separation or divorce.

Rebuilding your finances after divorce

Starting over financially can feel overwhelming, but many Canadians successfully rebuild after separation.

Focus on:

Rebuilding your credit

Pay bills on time, reduce debt balances, and regularly review your credit report.

Building emergency savings

Even small contributions can help improve financial security over time.

Updating financial documents

Review your:

Will
Life insurance beneficiaries
Pension beneficiaries
Powers of attorney

Setting new financial goals

Whether your goal is paying off debt, buying a home, or saving for retirement, creating a plan can help you move forward with confidence.

Real client story: Finding financial stability after divorce

Following a difficult divorce, Larissa found herself struggling with debt and financial uncertainty. By working with a Licensed Insolvency Trustee, she was able to reduce her debt, regain control of her finances, and move forward with confidence.

Read Larissa’s story.

Prioritize your safety

If your relationship involves abuse or you fear for your safety, leaving safely should be your first priority.

Resources that may be able to help include:

Canadian Women’s Shelter Crisis Line: 1-866-863-0511
Seniors Safety Line: 1-866-299-1011
Compass Community Services LGBTQ+ Support Line: 226-669-3760
Yellow Brick House Crisis Line: 1-800-263-3247

If you are in immediate danger, call 911.

FAQs

Can I leave my spouse if I have no job?

Yes. Many people leave marriages while unemployed. Depending on your circumstances, you may qualify for spousal support, government benefits, housing assistance, or employment programs.

What if my spouse controls all the money?

If your spouse controls your access to money, bank accounts, employment, or financial information, you may be experiencing financial abuse. Financial abuse can make it more difficult to leave a relationship, but support is available. Family lawyers, shelters, domestic violence organizations, and community agencies can help you understand your rights and develop a safe plan to leave.

Can I get government assistance after a divorce?

Potentially. Programs such as the Canada Child Benefit, GST/HST Credit, housing supports, and provincial assistance programs may help depending on your circumstances.

Am I responsible for my spouse’s debt after separation?

It depends on whether the debt is joint or individual. If your name is attached to a joint debt, lenders may still hold you responsible for repayment.

What happens if one spouse doesn’t want a divorce in Canada?

Canada has a no-fault divorce system. In most situations, a divorce can proceed even if one spouse does not agree.

How do I leave a marriage with children and no money?

Seek legal advice as early as possible. Child support, government benefits, housing assistance, and community support programs may help provide financial stability during the transition.

Can I leave a marriage if I have no savings?

Yes. While having savings can make the transition easier, many people leave marriages without a financial safety net. If you’re planning to separate, focus on understanding your finances, creating a realistic budget, and exploring available support such as government benefits, legal aid, housing assistance, family support, or spousal support where applicable.

If possible, start setting aside small amounts of money before leaving and gather important financial documents. Even if you have no savings today, creating a financial plan can help you take practical steps toward independence and long-term stability.

Struggling with debt during separation or divorce?

Separation often creates new financial challenges, including higher living costs, credit card debt, and housing expenses.

At Spergel, we’ve helped thousands of Canadians navigate financial difficulties following major life events, including divorce and separation.

If debt is making it harder to move forward, our Licensed Insolvency Trustees can help you understand your options and create a path toward financial stability.

Book your free, confidential consultation today.

Surplus income limits in Canada – updated for 2026

Colin Boulton — Wed, 03 Jun 2026 17:47:18 +0000

bankruptcy payments. These limits help ensure individuals and families filing bankruptcy can maintain a reasonable standard of living while still contributing fairly to their creditors. Below are the most recent surplus income limits for 2026.

Current surplus income limits – monthly thresholds (2026)

Household size	Threshold (CAD)
1	$2,716
2	$3,381
3	$4,157
4	$5,047
5	$5,724
6	$6,456
7	$7,188

The Office of the Superintendent of Bankruptcy typically updates surplus income limits annually. These limits apply across Canada, regardless of province.

When will the 2027 surplus income limits be released?

The Office of the Superintendent of Bankruptcy usually updates surplus income limits once per year to reflect changes in income levels and the cost of living in Canada. New limits are typically announced in early April. Once the 2027 thresholds are released, we will update this page with the latest figures.

How surplus income limits have changed in recent years

Household Size	2024	2025
1	$2,610	$2,666
2	$3,249	$3,318
3	$3,995	$4,080
4	$4,850	$4,953
5	$5,501	$5,618
6	$6,204	$6,336
7	$6,907	$7,054

These numbers match the official surplus income standards used by Licensed Insolvency Trustees across Canada. The increase reflects adjustments made by the Office of the Superintendent of Bankruptcy to account for inflation and changes in the cost of living.

Surplus income limits: key facts

- Surplus income is based on household net income after taxes.
- Payments equal 50% of income above the threshold.
- Calculations are based on average monthly income during bankruptcy.
- Higher surplus income can extend the length of bankruptcy.

Put simply: if you earn more, you pay more during bankruptcy.

What is surplus income in bankruptcy?

Surplus income is calculated by comparing your household’s net monthly income to the government threshold for your family size.

Surplus income formula

Monthly household net income − OSB surplus income threshold = Surplus income You must then pay half of that surplus into your bankruptcy estate.

Example: How surplus income is calculated

Imagine you live with your partner and your household size is two people. Household net income: $3,800 2026 threshold for two people: $3,381 Step 1 $3,800 − $3,381 = $419 surplus Step 2 50% × $419 = $209.50 monthly surplus payment This payment would continue during the bankruptcy period.

How surplus income affects the length of bankruptcy

Surplus income can also affect how long your bankruptcy lasts. For first-time bankruptcies:

Situation	Bankruptcy Length
No surplus income	9 months
Surplus under $200/month (average)	9 months
Surplus over $200/month (average)	21 months

For second bankruptcies:

Situation	Bankruptcy Length
No surplus income	24 months
Surplus over $200/month	36 months

At Spergel, many clients are surprised to learn that even moderate income increases can extend bankruptcy by an additional 12 months.

Why surplus income limits increase each year

The OSB adjusts surplus income thresholds annually to reflect:

- Inflation
- Changes in average Canadian income
- Rising living costs

These updates ensure bankruptcy rules continue to allow individuals and families to maintain a reasonable standard of living.

What if your income changes during bankruptcy?

Surplus income payments are based on average income throughout your bankruptcy, not just one month. If your income increases: surplus income payments will increase. If your income decreases: surplus income payments may decrease. This is particularly relevant for people who are:

- Self-employed
- Commission-based
- Receiving bonuses or overtime
- Working irregular hours

Even temporary increases in income can affect your average surplus income calculation and may extend your bankruptcy.

Why surplus income can make bankruptcy more expensive

Many people assume bankruptcy is the lowest-cost debt solution. However, if your income is above the surplus threshold, bankruptcy payments can increase significantly – and the bankruptcy period may also be extended. For individuals whose income is close to the threshold, even small income increases can make bankruptcy more expensive than alternative debt solutions.

Consumer proposal vs bankruptcy: why surplus income matters

A consumer proposal is a common alternative to bankruptcy. One key difference is that consumer proposal payments are fixed. This means:

- Your payment amount is negotiated upfront with creditors
- Increases in income do not increase your monthly payment
- Your payment schedule does not extend due to income increases

Consumer proposals can also reduce debt by up to 80%, depending on the circumstances. At Spergel, 99% of consumer proposals we file are accepted by creditors.

How to estimate your bankruptcy payment

To estimate whether surplus income may apply:

Determine your household size
Calculate your average monthly net income
Subtract the OSB surplus income threshold
Divide the result by two

If your average surplus exceeds $200 per month, your bankruptcy may be extended by an additional year. Because calculations can vary depending on allowable expenses and household income structure, it’s important to review your situation with a Licensed Insolvency Trustee.

Struggling with bankruptcy payments or surplus income?

Surplus income rules can make bankruptcy more expensive than many Canadians expect. If you’re unsure whether bankruptcy or a consumer proposal is the better option, Spergel’s Licensed Insolvency Trustees offer free, confidential consultations to review your income, household size, and debt. We’ve been helping Canadians find debt relief for over 35 years, and we’ll help you understand your options clearly before you make a decision.

FAQs

Do surplus income rules apply in every province?

Is Spergel legit? What you need to know before choosing a debt help company

Spergel — Fri, 24 Apr 2026 15:03:00 +0000

Spergel is a Licensed Insolvency Trustee firm in Canada, regulated by the federal government.

This means that Spergel is legally authorized to help Canadians reduce or eliminate debt through formal solutions like consumer proposals and bankruptcies – and is required to follow strict federal rules designed to protect you. If you’re asking this question, you’re not alone. When it comes to your finances, taking time to check who you can trust is not only normal – it’s the right thing to do.

Why people ask “Is Spergel legit?”

Searching for phrases like “is this company legit” is often part of making a careful, informed decision.

That’s especially true in the debt space, where:

Some companies charge high fees without delivering real solutions
Others are not licensed or regulated
The process can feel overwhelming or unfamiliar

Being cautious doesn’t mean something is wrong. It simply means you’re protecting yourself.

What makes Spergel a legitimate debt help provider?

Spergel is a Licensed Insolvency Trustee (LIT) firm.

Licensed Insolvency Trustees are the only professionals in Canada legally authorised to administer consumer proposals and bankruptcies.

Spergel is regulated by the Office of the Superintendent of Bankruptcy Canada (OSB), which oversees all insolvency proceedings in the country.

This means:

We are licensed and monitored by the federal government of Canada
We must follow strict legal and ethical standards
We are required to act in your best interest
Our fees are regulated and built into formal programs

For more than 35 years, Spergel has helped over 100,000 Canadians navigate debt safely, with clear, structured solutions designed to give people a fresh financial start.

Expert support you can trust

At Spergel, you’ll be supported by experienced Licensed Insolvency Trustees who are recognised leaders in their field.

Alan Spergel, Founder and Licensed Insolvency Trustee, has over 30 years of experience and has helped shape the industry as a former Chair of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) and member of the Superintendent of Bankruptcy’s advisory board.
Gillian Goldblatt, Licensed Insolvency Trustee and Partner, is an award-winning industry leader and a trusted media voice, featured in outlets including BNN Bloomberg and The Globe and Mail.

“Our role is to provide clear, honest advice so people can move forward with confidence.”
— Alan Spergel, Licensed Insolvency Trustee

Learn more about our team and their experience.

Licensed Insolvency Trustee vs debt consultant: what’s the difference?

Not all debt help services are the same – and this is where many people get caught out.

Licensed Insolvency Trustee (LIT)	Unlicensed debt consultant
Government regulated	Not government regulated
Legally authorised to reduce or eliminate debt	Cannot legally file insolvency solutions
Can file consumer proposals and bankruptcies	Cannot file formal debt solutions
Fees are structured and controlled	May charge high upfront fees

If a company isn’t a Licensed Insolvency Trustee, they cannot legally provide the solutions many people are actually looking for.

How to tell if a debt company is legit

Before working with any debt help provider, it’s important to ask the right questions.

Look for:

Are they a Licensed Insolvency Trustee?

Are they regulated by the Canadian government?

- Are fees clearly explained? A legitimate provider will always be transparent about how fees work. With a Licensed Insolvency Trustee, fees are regulated by the Canadian government and built into formal solutions like consumer proposals – meaning no large upfront costs and no hidden charges. If anything feels unclear – especially around fees – it’s always worth asking for a full explanation before moving forward.

Do they offer a free consultation?

Watch out for:

Pressure to sign quickly
Large upfront fees
Vague or unclear explanations
Claims that sound too good to be true

A legitimate provider will always:

Be transparent
Take time to explain your options
Give you space to make the right decision

What real clients say about Spergel

Spergel has helped thousands of Canadians navigate debt with confidence – and that’s reflected in the feedback we receive every day.

4,000+ reviews across platforms including Google and Trustpilot
Real client success stories from people across Canada
A long track record of helping individuals and families regain financial stability

“I would like to express my sincere thanks to the Spergel team for their excellent service, professionalism, and strong ethical standards throughout the process.”

Read real client stories and experiences.

What you can expect from Spergel

At Spergel, the approach is simple:

No judgment
No pressure
Clear, honest advice

We take the time to understand your situation and walk you through your options so you can make the right decision for you.

Still unsure? That’s completely okay

You don’t need to have all the answers before reaching out.

Spergel offers a free, confidential consultation where you can:

Ask questions
Understand your options
Get clarity without obligation

You’re in control the entire time.

Book your free consultation today

FAQs

Is Spergel a government company?

Why are groceries so expensive in Canada? (2026 update)

Ashvin Sharma — Thu, 16 Apr 2026 17:02:32 +0000

Grocery prices in Canada are high due to inflation, supply chain costs, climate impacts, and limited competition – all of which are pushing food prices higher across the country. Canadians are continuing to face rising grocery costs in 2026, with food prices increasing faster than many other everyday expenses.

According to Canada’s Food Price Report, a typical family of four now spends over $17,500 per year on groceries – an increase of nearly $1,000 compared to the previous year.

For many households, this is making it harder to afford basic essentials – and in some cases, forcing people to rely on credit or cut back on other necessities.

Quick answer: why groceries are so expensive in Canada

Grocery prices in Canada are high due to a combination of:

Inflation driving up costs across the supply chain
Ongoing supply chain disruptions
Climate-related impacts on food production
A weaker Canadian dollar increasing import costs
Limited competition among major grocery retailers

These factors together are pushing food prices higher – and keeping them elevated.

Inflation and food prices in Canada

One of the biggest drivers of high grocery prices in Canada is inflation.

According to Statistics Canada, food prices have increased at a faster rate than overall inflation in recent years – particularly for essentials like:

Meat
Dairy
Fresh produce

Inflation affects every stage of the food system, from farming and processing to transportation and retail – ultimately increasing the price consumers pay at checkout.

Supply chain disruptions and transportation costs

Global supply chain disruptions continue to impact grocery prices.

While conditions have improved since COVID-19, challenges remain:

Higher fuel and shipping costs
Labour shortages in logistics and agriculture
Delays in importing goods

Because Canada imports a large portion of its food – especially fresh produce – these disruptions directly increase grocery costs.

Climate and agricultural challenges

Extreme weather is another major factor driving food prices.

Events such as droughts, floods, and wildfires have:

Reduced crop yields
Disrupted livestock production
Increased farming costs

At the same time, rising costs for fertilizer, animal feed, and fuel are putting additional pressure on producers – costs that are ultimately passed on to consumers.

Weak Canadian dollar and import reliance

Canada relies heavily on imported food, particularly fruits and vegetables.

When the Canadian dollar weakens, it becomes more expensive to import goods – increasing grocery prices nationwide.

Even domestically produced food can be affected, as many inputs (like equipment and feed) are imported.

Lack of competition in Canada’s grocery sector

Canada’s grocery industry is highly concentrated.

A small number of major players – including Loblaw, Sobeys (Empire), and Metro – control a large share of the market.

Limited competition can:

Reduce pricing pressure
Allow higher profit margins
Limit consumer choice

This has led to increased scrutiny from regulators and growing frustration among Canadians.

How rising grocery costs are affecting Canadians

Rising grocery costs are putting increasing pressure on household budgets across Canada.

Insights from Spergel’s upcoming 2026 version of our Debt Load Study highlight just how significant this issue has become. In the survey, groceries were the most common essential expense respondents reported using credit to cover – cited by around 60% of respondents, ahead of costs like rent, utilities, and transportation.

While this data reflects regional findings, it points to a broader national trend: for many Canadians, food is no longer a flexible expense – it’s a financial pressure point.

Across the country, people are:

Cutting back on food quality or quantity
Delaying other essential expenses
Relying on credit to cover basic needs
Turning to food banks for support

Real experiences from Canadians in the study highlight the human impact behind the data:

“Not being able to get the groceries needed.”

“Basic necessities of life, housing and groceries for example, aren’t met and people suffer the consequences in their physical and mental health.”

These insights reinforce what we’re seeing more broadly: grocery inflation isn’t just a cost issue – it’s affecting people’s wellbeing, stability, and ability to get ahead financially.

Food Banks Canada reports record demand, highlighting how widespread the issue has become.

For those already managing debt, rising grocery costs can quickly push budgets beyond breaking point – turning a manageable situation into something much harder to control.

What you can do to reduce grocery costs

While prices remain high, there are ways to manage your spending:

Plan meals and shop with a list
Use apps like Flipp or Checkout 51
Buy store brands or bulk items
Reduce food waste
Choose local or seasonal products where possible

Even small changes can help offset rising costs over time.

Struggling to afford groceries?

If rising grocery bills are forcing you to rely on credit or fall behind on other expenses, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you:

Reduce your debt through a consumer proposal
Consolidate payments into something more manageable
Understand your options without judgment

Book a free consultation today and take the first step toward financial relief.

FAQs: Grocery costs in Canada

What is the average grocery bill in Canada?

A family of four spends approximately $17,500+ per year on groceries, according to Canada’s Food Price Report.

Why is food more expensive in Canada than the US?

Food costs in Canada are often higher due to:

Smaller market size
Higher transportation costs
Weaker competition
Currency differences

Will grocery prices go down in Canada?

Prices may stabilise, but significant decreases are unlikely in the short term due to ongoing structural challenges like supply chains and climate impacts.

The cost of living in British Columbia (2026): monthly expenses, cities, and income needed

Alan Spergel — Mon, 13 Apr 2026 13:48:59 +0000

Living in British Columbia offers stunning scenery and a high quality of life – but it also comes with some of the highest living costs in Canada.

In 2026, rising housing prices, grocery bills, and transportation costs are putting increasing pressure on household budgets across the province.

Whether you live in Vancouver, Victoria, Kelowna, or a smaller community, understanding the true cost of living in BC – and how it varies by city – is essential for staying financially secure. In this guide, we break down average monthly expenses, living wage benchmarks, and what it really costs to live in British Columbia in 2026.

Quick answer: cost of living in BC (2026)

Household type	Monthly cost (2026)	Annual income needed
Single adult	$3,500 – $4,200	$50,000 – $58,000
Couple	$5,700 – $6,800	$80,000 – $95,000
Family of four	$7,400 – $8,800	$95,000 – $115,000

Estimates based on data from Statistics Canada, CMHC, and cost-of-living aggregators such as Numbeo (2025-2026). Actual costs vary by location and lifestyle.

Struggling to keep up with rising costs? Explore your debt relief options.

What is the average cost of living in BC in 2026?

The cost of living refers to the total amount needed to cover essential expenses such as housing, food, transportation, utilities, and healthcare.

In British Columbia, average monthly costs in 2026 range from $3,500 to over $8,800, depending on household size and location. Costs tend to be highest in urban centres like Vancouver and Victoria.

Is British Columbia expensive to live in?

Yes – BC is consistently ranked among the most expensive provinces in Canada.

Compared to other provinces:

Housing costs are among the highest in the country
Fuel and transportation costs are above the national average
Groceries and utilities are more expensive than in many regions
Provincial sales tax (7% PST + 5% GST) adds to everyday spending

Despite this, BC continues to attract residents due to its job opportunities, healthcare access, and lifestyle appeal.

What are the biggest living expenses in BC?

The cost of living in BC is driven by a handful of major expenses – with housing by far the largest, followed by groceries, transportation, and utilities.

Expense category	Monthly cost (2026)
Housing	$2,000 – $3,200+
Groceries	$500 – $600
Transportation	$200 – $700
Utilities & internet	$300 – $450
Insurance & healthcare	$75 – $200

Ranges based on a combination of national datasets and regional cost variations in BC.

Housing costs in BC

Housing continues to be the largest expense for most British Columbians.

Average rent (1-bed, Vancouver): ~$2,300–$2,600/month (source: Rentals.ca)
Average rent (Victoria): ~$2,100–$2,300/month (source: Zumper)
Average home price (BC): ~$940,000 (source: WOWA)

Even in smaller cities, affordability remains a challenge – particularly for first-time buyers.

Grocery costs in BC

Food prices continue to rise in 2026.

Monthly groceries (single adult): $500 – $600 (source: Canada Food Price Report)
Family of four: ~$1,200 – $1,400/month
Food inflation remains elevated year-over-year

Families and those in remote areas often face higher costs due to transport and access.

Transportation costs

Gas: ~$1.80/litre (average) (source: CBC)
Car insurance: ~$1,900–$2,000/year (source: Rates.ca)
Vancouver transit pass: ~$201/month (source: TransLink)

Living outside major cities often means relying on a vehicle – increasing monthly costs.

Utilities and internet

Monthly average: $300 – $450 (source: MovingWaldo)

While BC Hydro rates are relatively stable, total utility costs can still add up – particularly during colder months.

Healthcare and insurance

While MSP premiums are no longer required in BC, many residents still pay for:

Dental care
Prescriptions
Mental health services

Private insurance can add $75–$200/month, depending on coverage.

Cost of living in major BC cities (2026)

City	Rent (1-bed)	Overall affordability	Notes
Vancouver	~$2,500+	Low	Highest costs
Victoria	~$2,200	Moderate	High demand
Kelowna	~$1,800	Moderate	Growing city
Kamloops	~$1,600	Moderate	Smaller market
Northern BC	~$1,200–$1,600	Mixed	Lower rent, higher groceries

Vancouver

The most expensive city in BC, driven by housing demand and strong job opportunities.

Victoria

High demand and limited housing supply keep costs elevated.

Kelowna & Kamloops

More affordable than coastal cities, but rising quickly.

Northern BC

Lower housing costs, but higher food and transportation expenses.

What is the living wage in BC in 2026?

City	Living wage
Metro Vancouver	~$27/hour
Victoria	~$26–$27/hour
Kamloops	~$23–$24/hour

Living wage figures are based on calculations from regional living wage initiatives and reflect the income needed to cover basic expenses.

A single adult typically needs $50,000+ per year, while families often require $95,000+, depending on location.

Why the cost of living in BC is pushing people into debt

According to Statistics Canada, Canadian households owe approximately $1.77 in credit market debt for every $1 of disposable income, while the household debt service ratio remains elevated at around 14–15%.

With essential costs continuing to rise, many households are increasingly relying on credit to manage everyday expenses such as housing and groceries.

Recent findings from Spergel’s 2026 Debt Load & Psychological Wellbeing Study (British Columbia) highlight just how widespread this pressure has become:

Over 70% of British Columbians say rising grocery costs have increased their reliance on credit.
85%+ report that housing costs have made it harder to stay current on bills or debt.
The increase in the cost of living is the most common reason people are going deeper into debt.
A significant proportion of British Columbians report using credit to cover everyday living expenses.
Many say their income is not keeping up with the rising cost of living, falling behind on payments, including credit cards, rent, and utilities.
Financial stress is now closely linked to mental health challenges, including anxiety and sleep disruption.

Financial pressure is also taking a toll beyond money:

Over 50% report feeling extremely stressed by their current debt or financial situation.
Almost 70% say their mental health has suffered as a result of debt or financial strain.

As a result, at Spergel we’re seeing more British Columbians struggling with:

Credit card debt
Lines of credit
Payday loans

Signs the cost of living may be becoming unmanageable

For many people, financial pressure builds gradually. These are some of the most common warning signs:

Only making minimum payments
Using credit for groceries or everyday essentials
Falling behind on rent, utilities, or bills
Watching balances stay the same despite making payments

Beyond finances, many British Columbians report that rising living costs and debt are contributing to stress, anxiety, and sleep disruption.

Many people delay getting help because they feel embarrassed, think they can manage on their own, or believe their situation isn’t “bad enough” yet.

“All my income goes to debt and bills, leaving almost nothing for basic living.”

If this sounds familiar, you’re not alone – and there are options available to help you regain control.

How to reduce your cost of living in BC

Track your spending for one full week
Use grocery apps like Flipp and Checkout 51
Review subscriptions and recurring bills
Compare insurance options annually
Apply for BC benefits and rebates where eligible

Download Spergel’s FREE Budget Tracker to get started.

Struggling with debt?

If rising costs are forcing you to rely on credit, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you understand:

Consumer proposals – reduce your debt by up to 80%
Debt consolidation – simplify payments
Bankruptcy – a legal reset when needed

Speak to a Licensed Insolvency Trustee in BC today.
Free consultation. No judgment. Real solutions.

FAQs: cost of living in BC

What income do you need to live in BC?

A single adult typically needs $50,000+, while families often require $95,000+ depending on location.

What is the biggest expense in BC?

Housing is the largest cost, followed by groceries and transportation.

Is BC more expensive than Ontario?

BC is generally more expensive for housing and fuel, while other costs are comparable.

Are smaller cities in BC more affordable?

Yes – cities like Kamloops and Prince George offer lower housing costs than Vancouver or Victoria.

Get support today

The cost of living in BC in 2026 is putting real pressure on households – but you don’t have to manage it alone.

Spergel has Licensed Insolvency Trustees across British Columbia who can help you take control of your finances and explore your options.

Book your free consultation today.

The cost of living in Ontario in 2026: monthly expenses, cities, and salary needed

Graeme Hamilton — Wed, 25 Mar 2026 13:47:22 +0000

Quick answer: Cost of living in Ontario (2026)

Single adult: $3,300 – $4,000/month
Couple: $5,400 – $6,500/month
Family of four: $6,800 – $8,200/month
Biggest expense: Housing
Most affordable regions: Northern Ontario, Windsor, smaller cities

Costs vary significantly depending on where you live, your lifestyle, and whether you rent or own.

Estimates based on data from Statistics Canada, CMHC, and cost-of-living aggregators such as Numbeo (2025–2026). Actual costs vary by city, lifestyle, and housing situation.

What is the average cost of living in Ontario per month?

The cost of living refers to the total amount needed to cover essential expenses such as housing, food, transportation, utilities, and healthcare.

In Ontario, average monthly costs in 2026 are estimated at:

Household type	Monthly cost (2026)
Single adult	$3,300 – $4,000
Couple	$5,400 – $6,500
Family of four	$6,800 – $8,200

These figures are based on recent data from Statistics Canada, CMHC, and consumer cost tracking platforms, and reflect ongoing inflation in key categories like food and housing.

Is Ontario expensive to live in compared to other provinces?

Yes – Ontario remains one of the most expensive provinces in Canada.

Compared to other regions:

Housing costs are significantly higher than Alberta and the Maritimes
HST (13%) increases everyday spending
Insurance and electricity are among the highest in Canada

However, Ontario still offers:

Strong job markets (especially in Toronto and Ottawa)
Access to healthcare and infrastructure
Higher average wages in many sectors

What are the biggest living expenses in Ontario?

The cost of living in Ontario is made up of several key expenses, with housing, groceries, and transportation accounting for the largest share of monthly spending. The table below gives a snapshot of average monthly costs in 2026, before we break each category down in more detail.

Expense category	Monthly cost (2026)
Housing	$1,800 – $2,800+
Groceries	$500 – $600
Transportation	$150 – $600
Utilities & internet	$320 – $480
Insurance & healthcare	$75 – $200

Housing costs in Ontario (2026)

Housing continues to be the largest expense for most Ontarians.

Average rent (1-bed, Toronto): ~$2,500/month (source: Rentals.ca)
Average rent (Ottawa): ~$1,950/month (source: Zumper)
Average home price (Ontario): ~$890,000 (CREA, March 2026)

Even in smaller cities, affordability remains a challenge – particularly for first-time buyers.

Grocery costs in Ontario

Food prices continue to rise in 2026.

Monthly groceries (single adult): $500 – $600
Food inflation remains elevated year-over-year

Families and those in remote areas often face even higher costs due to transport and access.

Transportation costs

Gas: ~$1.60/litre (average) (source: StatCan)
Car insurance: ~$1,700/year (source: Ratehub)
Toronto transit pass: ~$156/month (source: Toronto Transit Commission)

Living outside major cities often means relying on a vehicle – increasing monthly costs.

Utilities and internet

Monthly average: $320 – $480 (source: LetsGetMoving)

Ontario continues to have some of the highest electricity costs in Canada, especially during winter months.

Healthcare and insurance

While OHIP covers essential services, many Ontarians still pay for:

Dental care
Prescriptions
Mental health services

Private insurance can add $75–$200/month.

Cost of living in major Ontario cities (2026)

Cost of living in Toronto

Highest housing costs in the province
Strong salaries but high competition
Best transit access

Overall: Least affordable

Cost of living in Ottawa

Slightly lower housing costs than Toronto
Stable government job market

Overall: Moderate affordability

Cost of living in Hamilton

More affordable housing than Toronto
Good commuter access

Overall: Moderate

Cost of living in Northern Ontario (Sudbury, Thunder Bay)

Lower housing costs
Higher groceries and utilities
Limited transit

Overall: Mixed affordability

What is the living wage in Ontario in 2026?

Living wage estimates vary by region:

Toronto: ~$25–$26/hour
Ottawa: ~$22–$23/hour
Windsor: ~$18–$19/hour

A single adult typically needs $48,000–$55,000/year to cover basic expenses, while families often require $85,000+ depending on location.

What are the cheapest places to live in Ontario?

If affordability is your priority, consider:

Windsor
London
Kingston
Sudbury
Thunder Bay

These areas tend to offer lower housing costs, though trade-offs may include fewer job opportunities or higher transportation costs.

Why the cost of living is pushing Ontarians into debt

For many households, rising costs aren’t just a budgeting issue – they’re leading to increased reliance on credit.

Recent data shows:

Canadians owe ~$1.74 for every $1 of disposable income
Debt service ratios remain elevated
More households are using credit to cover essentials

At Spergel, we’re seeing more Ontarians struggling with:

Credit card debt
Lines of credit
Payday loans

If this sounds familiar, you’re not alone – and there are options available.

How to reduce your cost of living in Ontario

Here are practical ways to regain control:

Track your spending for one full week using our free Budget Tracker
Use tools like Flipp or Checkout 51 for groceries, and learn how to coupon
Review subscriptions and recurring bills
Compare insurance and utility providers annually
Check eligibility for benefits (e.g. Trillium Benefit, OESP)

Struggling with debt due to rising costs?

If the cost of living is forcing you to rely on credit, it may be time to explore your options.

Spergel’s Licensed Insolvency Trustees can help you understand:

Consumer proposals – reduce debt by up to 80% with one payment
Debt consolidation – simplify payments if your credit is still strong
Bankruptcy – a legal reset when no other options work

Speak to a Licensed Insolvency Trustee in Ontario today. Free consultation. No judgment. Real solutions.

FAQs

How much income do you need to live in Ontario?

Why you should never pay a collection agency

Spergel — Fri, 20 Mar 2026 13:46:11 +0000

Collection agencies are hired to recover unpaid debts. They may contact you through phone calls, letters, emails, or other methods in an attempt to collect payment.

When this happens, many people’s first instinct is to pay the collection agency immediately just to stop the calls. Paying a collection agency, however, is not always the best move – and in some situations it can actually make your financial situation worse. Before making a payment, it’s important to understand how collections work in Canada and what your options are.

How do collections affect your credit report in Canada?

By the time a debt is sent to collections, the damage to your credit score has usually already occurred.

Late or missed payments are reported to Canada’s two main credit bureaus:

Equifax
TransUnion

These missed payments can lower your credit score and remain on your credit report for several years.

Once an account is sent to collections:

a collection account appears on your credit report
the negative payment history remains
your credit score may drop further

Collection accounts can make it harder to:

qualify for loans
obtain a mortgage
rent an apartment
finance a vehicle

This damage happens whether you pay the collection agency or not.

Do collections disappear after 6 years in Canada?

In most cases, a collection account will remain on your credit report for six years from the date of last activity or last payment. After this period, the collection account typically drops off your credit report automatically.

However, there are two important things to understand:

The debt itself may still legally exist even after it disappears from your credit report.
Making a payment may reset the last activity date, which can extend how long the collection remains on your credit report.

Because of this, many people choose to review their situation carefully before making a payment to a collection agency.

Why paying a collection agency doesn’t always help

Many people believe paying a collection agency will immediately improve their credit score.

In reality, this is usually not the case.

Even if you pay the debt in full:

the collection entry may remain on your credit report
the record of missed payments still exists
the damage to your credit score may remain for years

In some cases, making a payment can even extend how long the collection account appears on your credit report.

This is one of the main reasons why it’s important to fully understand your situation before making a payment.

Paying a collection agency can restart the statute of limitations

Another important factor to understand is the statute of limitations on debt. In many Canadian provinces, creditors only have a limited amount of time to pursue legal action for unsecured debts.

In Ontario, for example, the limitation period is typically two years from the last payment or acknowledgment of the debt. If you make a payment to the collection agency, that limitation period may restart.

This means the creditor could once again have the legal right to pursue collection through the courts.

What happens if you don’t pay a collection agency?

If you choose not to pay a collection agency, several things may happen depending on the debt and your situation.

Continued collection calls

Collection agencies may continue calling or sending letters in an attempt to collect the debt.

Possible legal action

For larger debts, creditors may pursue legal action that could lead to:

For smaller debts, however, legal action is often unlikely due to the cost involved.

The debt may become legally unenforceable

If the statute of limitations expires, creditors may still attempt to collect the debt, but they may no longer be able to successfully sue you.

Because these rules vary by province, it’s important to confirm the timeline where you live.

When it might make sense not to pay a collection agency

There are situations where paying a collection agency may not be the best option.

For example:

the debt is very old
the statute of limitations has expired
the collection agency cannot prove the debt belongs to you
you plan to settle the debt for less
you have no income or assets creditors could collect

Before ignoring collection calls, it is important to confirm your legal situation with a professional like a Licensed Insolvency Trustee.

When paying the debt might make sense

There are also cases where resolving the debt could be the best option.

For example:

you want to avoid possible legal action
you have the financial ability to settle the debt
you want to resolve the issue quickly
you are preparing to apply for a mortgage or financing

In some cases, it may be possible to negotiate a settlement for less than the full balance owed.

Alternatives to paying a collection agency

If you cannot afford to repay your debts, there are other options that may help resolve collection issues.

Negotiating a settlement

You may be able to negotiate a reduced lump-sum payment.

Debt management plan

A credit counsellor can help arrange structured payments over time.

Consumer proposal

A consumer proposal is a legal process that can:

reduce unsecured debts by up to 80%
stop collection calls
stop wage garnishments
consolidate debts into one monthly payment

Once a consumer proposal is filed, a stay of proceedings legally stops creditors and collection agencies from contacting you.

Bankruptcy

Bankruptcy may eliminate most unsecured debts and immediately stop collection activity.

What should you do if a collection agency contacts you?

If a collection agency reaches out to you, consider taking these steps before making any payments:

Confirm the debt actually belongs to you
Request written proof of the debt
Check the date of last payment
Determine whether the statute of limitations has expired
Speak with a Licensed Insolvency Trustee about your options

Making a quick payment without understanding the situation can sometimes create bigger problems later.

Struggling with collection calls?

Collection calls can be stressful, especially if you’re unsure what your rights are or what options you have.

Spergel’s Licensed Insolvency Trustees can review your situation and help you understand whether a settlement, consumer proposal, or another debt solution may be the best path forward.

Consultations are free, confidential, and judgment-free – book yours now.

Tax Stress Survey 2026: A cash-flow stress test for Canadians

Spergel — Tue, 24 Feb 2026 14:37:33 +0000

To understand the tax stress Canadians are experiencing, Spergel ran the Canadian Tax Stress Survey 2026. With 210 responses, the story is clear: many Canadians are bracing to owe money, a meaningful share are feeling real anxiety, and a growing number expect they’ll need a payment plan to manage what they owe.

The big takeaway: “I’m worried I’ll owe, and I can’t afford it”. Instead of confusion or paperwork, the top driver of stress was affordability. Over half of respondents selected “Worried I’ll owe money or can’t afford to pay” as a key reason tax season feels stressful. In other words, absorbing the cost is a bigger fear than owing. Many expect to owe and some expect the bill to be significant. In this survey, about 1/3rd of respondents said they expect they’ll owe money when they file. Among those expecting to owe, a meaningful portion estimate balances in the $1,000+ range, with a smaller but important group expecting $2,500+, $5,000+, and even $10,000+.

Some respondents said tax stress is affecting daily decisions and wellbeing. A portion reported cutting back on essentials like groceries, rent, or utilities due to tax stress. Others reported lost sleep or persistent worry. When Canadians think they’ll owe, the most common answer is a payment arrangement. Nearly as many respondents said they don’t know yet, another signal that uncertainty and cash-flow instability are central to the tax stress experience.

What Canadians say would actually help next year

When asked what would reduce tax stress, respondents were remarkably consistent: they want clarity and predictability. The top request was a simple way to estimate whether they’ll owe or get a refund. Other high-demand supports included: someone to talk to, payment-arrangement guidance, and a straightforward checklist.

Comparative table: the headline stats

What we asked	What Canadians told us
Expect to owe money when they file	~1 in 3
Not sure what will happen when they file	~1 in 5
Average tax stress score (1–5)	3.15
Worried they’ll owe money or can’t afford to pay	53% (111 of 210)
Cut back on essentials due to tax stress	24% (51 of 210)
Lost sleep or persistent worry due to tax stress	21% (45 of 210)
If they owe, most common plan is a payment arrangement	27%
“I don’t know yet” how they’ll cover a tax bill	21%

(All figures come from the survey results export of 210 respondents. Multi-select questions are reported here as “% of respondents” for clarity.)

“Behind tax stress is often a cash-flow reality, Canadians are worried about a bill they can’t absorb. The earlier someone seeks clarity, the more options they typically have.” Gillian Goldblatt, Partner, Licensed Insolvency Trustee, msi Spergel Inc.

A real client’s story: Jordan

Jordan, a former client, described the turning point simply: “Finding Spergel was a turning point for me.”

In Jordan’s case, Spergel helped reduce his tax debt through reassessment and appeals, and put a manageable plan in place so the stress finally eased.

Click here to read more.

What to do if tax season is causing stress

If any of this sounds familiar, you are not alone. It can help to understand your options early, even if you are not ready to take action.

Depending on your situation, solutions may include:

- A quick “tax check” before you file: what you owe today, what you expect to owe, and what you can realistically afford monthly.
- Getting clarity on CRA payment arrangements (how they work, what payments might look like, and what to do if you can’t pay in full).
- Catching up on unfiled returns so you can reduce uncertainty and avoid compounding penalties and interest.
- A consumer proposal (can reduce monthly payments and stop interest), in cases where tax debt and other debts have become unmanageable.
- Support tools like checklists and budgeting trackers to plan for a balance owing and avoid surprises next year.

Spergel offers free, confidential 30-minute consultations to help Canadians understand their options and next steps, without judgment.

2026 Canada tax deadline: when to file and when to pay

Gillian Goldblatt — Wed, 18 Feb 2026 17:14:07 +0000

Missing a Canada Revenue Agency (CRA) deadline can result in late-filing penalties, daily compound interest, frozen benefits and credits or CRA collection action. This guide breaks down 2026 Canada tax deadlines, payment dates, installment dates, and what happens if you miss them.

2026 Canada tax deadlines at a glance

Personal tax filing deadline: April 30, 2026
Personal tax payment deadline: April 30, 2026
Self-employed filing deadline: June 15, 2026
RRSP contribution deadline: March 2, 2026
Quarterly installment dates: March 15, June 15, September 15, December 15

What is the tax filing deadline in Canada for 2026?

Personal income tax returns (2025 tax year)

Filing deadline: April 30, 2026
Payment deadline: April 30, 2026

If you owe money, payment must be received by April 30, 2026 to avoid interest – even if you qualify for an extended filing deadline.

Self-employed individuals

Filing deadline: June 15, 2026
Payment deadline: April 30, 2026

Even though you have until June to file, interest starts accruing after April 30 if you owe taxes.

Corporate income tax

Filing deadline: Six months after your fiscal year-end
Payment deadline: Generally two months after year-end
Canadian-Controlled Private Corporations (CCPCs) claiming the small business deduction may have three months to pay

Trust returns

Filing deadline: March 31, 2026 (for trusts with a December 31, 2025 year-end)

Trust reporting rules remain stricter under expanded disclosure requirements, so professional advice is recommended.

When are tax installments due in 2026?

If you’re required to make quarterly installment payments, deadlines are:

March 15, 2026
June 15, 2026
September 15, 2026
December 15, 2026

The CRA typically requires installments if you owe more than $3,000 ($1,800 in Quebec) for two consecutive years.

What happens if you file taxes late in Canada?

The CRA penalty is:

5% of the balance owing, plus
1% per month the return is late (up to 12 months)

If you were late in previous years, penalties may double. Interest is calculated daily and compounds until paid in full. At Spergel, our Licensed Insolvency Trustees regularly see tax debts double within a few years due to accumulated penalties and daily compound interest. The CRA sets its prescribed interest rate quarterly. As of early 2026, the rate on overdue taxes is significantly higher than traditional lending rates, making unpaid balances expensive to carry.

What if you miss the tax payment deadline?

If you file on time but don’t pay:

Interest starts immediately (April 30)
CRA can garnish wages
Bank accounts can be frozen
Benefits (like GST credits or Canada Child Benefit) may be withheld

Filing late and paying late increases the financial impact significantly.

How does CRA collect unpaid taxes?

Unlike private creditors, the CRA does not need a court order to begin collection action. They can:

Garnish wages directly through your employer
Freeze and seize bank accounts
Place liens on property
Redirect tax refunds and government benefits

Because of these powers, ignoring CRA tax debt is rarely effective.

What if you can’t pay your taxes?

If you can’t afford your tax bill, still file on time to avoid late-filing penalties.

Your options may include:

1. CRA payment arrangement

You may negotiate monthly payments directly with the CRA.

2. Taxpayer relief provisions

You can apply to have penalties or interest reduced due to:

Financial hardship
Serious illness
Extraordinary circumstances

3. Consumer proposal

A legally binding agreement filed through a Licensed Insolvency Trustee that can reduce CRA tax debt.

CRA tax debt is unsecured debt and can be included in a consumer proposal.

4. Bankruptcy

In severe cases, bankruptcy may eliminate tax debt.

If you’re unsure which option is right, speaking to a Licensed Insolvency Trustee is often the safest first step.

GST and HST filing deadlines (2026)

Deadlines depend on your reporting period:

Monthly/quarterly filers: Due 1 month after reporting period ends
Annual filers: Due 3 months after year-end
Annual (calendar year-end): Filing due June 15, payment due April 30

Even if you had no business activity, returns must still be filed.

Other important 2026 tax dates

Earliest date to file: Mid-February 2026 (CRA typically opens NETFILE)
RRSP contribution deadline (for 2025 tax year): March 2, 2026
T4 and T5 slip deadline: February 28, 2026
NR4 deadline: March 31, 2026

Contributing to your RRSP before the deadline may reduce your taxable income.

2026 Canada tax deadline: Frequently Asked Questions

What is the last day to file taxes in Canada in 2026?

April 30, 2026 for most individuals. Self-employed individuals have until June 15, 2026 to file, but payment is still due April 30.

Does owing taxes affect your credit score?

The CRA does not report directly to credit bureaus. If, however, your tax debt results in a lien or legal judgment, it may affect your credit.

What happens if you haven’t filed taxes in 5 years?

The CRA can:

Issue arbitrary assessments
Apply penalties and daily interest
Garnish wages
Freeze bank accounts
Withhold benefits

The longer you wait, the harder it becomes to resolve.

Can tax debt be included in a consumer proposal?

Yes. CRA tax debt is unsecured and can be included in a consumer proposal, which may reduce the total amount owed.

Is there a penalty if you file taxes but don’t pay?

Yes. Filing avoids the 5% late-filing penalty, but interest begins immediately on unpaid balances after April 30.

Can the CRA take money from your bank account without notice?

The CRA can issue a Requirement to Pay to your financial institution, which may result in funds being frozen or seized.

Tips for a smoother 2026 tax season

Organize slips early (T4, T5, RRSP receipts)
Use CRA My Account to check balances and installment requirements
File electronically using NETFILE or EFILE
Review prior year carry-forward credits
Don’t ignore CRA letters

Struggling with tax debt?

At Spergel, we regularly help Canadians who:

Owe back taxes
Have unfiled returns
Are facing CRA collection action
Can’t afford installment payments

If tax debt is keeping you up at night, you’re not alone.

Book a free, no-obligation consultation with a Licensed Insolvency Trustee to explore your options and stop the stress.

Grocery Debt: the “New Normal” for Canadians in 2026: What Spergel’s survey reveals

Spergel — Tue, 17 Feb 2026 15:56:27 +0000

If it feels like groceries are eating up more of your budget, you are not imagining it.

In a recent Spergel survey, respondents reported cutting back on food, relying on credit for groceries, and delaying bills to keep food on the table. In a drastic shift from normal shopping habits, respondents demonstrated financial coping behaviors that often show up when household cash flow has no breathing room. These findings are consistent with higher average costs of living we’re seeing across Canada.

Our findings below show how most people are managing their grocery budget across Canada, and what our trustees are noticing through their clients and consultations.

Key findings from the Spergel survey

60.6% said they skipped meals or reduced portions due to financial pressure in the past 6 months.
Over half of the respondents used BNPL/line of credit/payday loans to buy groceries in the past 6 months, and 70.3% are in the “credit orbit” (used it or have seriously considered it).
2/5 of Canadians delayed paying a bill so they could buy groceries in the past 6 months.
57.6% worried about grocery money at least sometimes in the past 6 months.
1 in 2 Canadians feel that debt payments made essentials at least somewhat harder (groceries, rent, utilities) in the past 6 months.

Respondents also described common coping behaviours: 55.8% shopped at multiple stores to chase deals, 49.1% bought less meat/protein, 49.1% used coupons or price matching more than before, and 44.2% bought fewer fruits and vegetables.

What does grocery debt and bill juggling look like?

When people hear “food insecurity,” they often think of an extreme situation. In reality, many households first feel it through everyday trade-offs:

putting groceries on credit
delaying a bill to pay for food
cutting back on healthier foods because they cost more
worrying at the checkout even when they have a job and are “getting by”

These patterns matter because they can create a cycle. If groceries go on credit, then bills get delayed, then late fees and interest pile up, and debt stress grows. Many people describe constant stress at the checkout and ongoing worry about groceries.

“For many Canadians, the warning sign is not one big financial event. It is the steady pressure of higher living costs combined with existing debt payments. We are seeing the cost of groceries show up in real household budgets. When budgets do not stretch, people lean on credit or start shuffling payments to get by.” – Rob Kilner, Partner and Licensed Insolvency Trustee, Spergel.

Learn more about how debt affects mental health: Debt Load and the Impact to Psychological Wellbeing Study.

What Canadians told us, and why it matters right now

What we asked Canadians	What the survey found	What it means	Why this matters now in Canada
Are people cutting back on food?	60.6% skipped meals or reduced portions (past 6 months)	Many are eating less because money is tight.	Food insecurity has been rising nationally (10 provinces): 22.9% in 2023. (Statistics Canada)
Are people “financing” groceries?	53.2% used credit/BNPL/LOC/payday loans for groceries (past 6 months)	Groceries are becoming a debt expense, not just a household expense.	Grocery prices are still rising: “food purchased from stores” was +5.0% YoY in Dec 2025. (Statistics Canada)
Are people juggling bills to buy food?	40.5% delayed paying a bill so they could buy groceries	This signals cash-flow strain that can spiral into arrears and deeper debt.	Record food bank demand suggests strain is widespread: nearly 2.2M visits in March 2025. (Food Banks Canada)
Is food stress widespread (even before food bank use)?	57.6% worried about grocery money at least sometimes (past 6 months)	Stress is broad. Even households not using food banks may be one unexpected expense away.	National estimates show food insecurity continued rising: 25.5% in 2024 (10 provinces). (PROOF)
Is debt directly squeezing essentials?	51.7% said debt payments made essentials harder (past 6 months)	Debt is competing with rent, utilities, and groceries.	Rising food insecurity and record food bank usage align with household budget pressure. (Statistics Canada)

Note: Our findings are from a survey of 269 Canadians. National figures are measured differently, but they help put these experiences in context.

What to do if groceries are going on credit

If any of this sounds familiar, you are not alone. It can help to understand your options early, even if you are not ready to take action.

Depending on your situation, solutions may include:

Budgeting and planning tools like budget trackers to help regain control.
Reducing spend on food delivery apps and trying “Pantry-First” meal planning.
A consumer proposal (often reduces monthly payments and stops interest), in cases of severe debt load.

Spergel offers free, confidential 30-minute consultations to help Canadians understand their options and next steps, without judgment.

Articles & Insights – Spergel

How to remove collections from your credit report in Canada (2026)

What is a collection account?

How does a collection entry affect your credit score?

Can you remove collections from your credit report in Canada?

Step 1: Review your credit report carefully

Step 2: Dispute incorrect collection accounts

Step 3: Check whether the collection account should have expired

Step 4: Resolve outstanding debts

Can you pay to remove a collection account?

How to rebuild your credit after collections

Paying bills on time

Keeping credit utilization low

Consider a secured credit card

Avoid multiple credit applications

Monitor your credit report

A real client story: How Samantha stopped collection calls

Can a Licensed Insolvency Trustee remove collections from your credit report?

Frequently Asked Questions

How long do collections stay on your credit report in Canada?

Will paying a collection account improve my credit score?

Can I remove a paid collection from my credit report?

What happens if a collection account isn’t mine?

Can a collection agency sue me?

Need help with collection accounts or debt problems?

How to save money on groceries in Canada: 10 practical tips

Quick ways to save money on groceries

Why are groceries so expensive in Canada?

1. Plan your meals before you shop

2. Build your grocery list around flyer specials

3. Use cashback apps

4. Join grocery store loyalty programs

5. Try couponing

6. Compare unit prices

7. Reduce food waste

8. Buy generic or store brands

9. Take advantage of price matching

10. Track your grocery spending

A real client story: small changes can add up

When saving on groceries isn’t enough

Frequently Asked Questions

How much should a Canadian spend on groceries each month?

What is the easiest way to save money on groceries?

Is couponing worth it in Canada?

What are the best grocery savings apps in Canada?

How can I cut my grocery bill in half?

What is the cheapest grocery store in Canada?

Final thoughts

What to read next

How to leave a marriage with no money in Canada: a step-by-step guide to financial independence

Key Takeaways

How to leave a marriage with no money

1. Take stock of your financial situation

2. Understand your legal rights

3. Open a personal bank account

4. Create a financial plan

What if your spouse controls all the money?

What happens to debt during a separation or divorce?

Expert insight from a Licensed Insolvency Trustee

Financial help available after separation in Canada

Secure your important documents

Build a support network

Consider employment and income opportunities

Rebuilding your finances after divorce

Rebuilding your credit

Building emergency savings

Updating financial documents

Setting new financial goals

Prioritize your safety

FAQs

Can I leave my spouse if I have no job?

What if my spouse controls all the money?

Can I get government assistance after a divorce?

Am I responsible for my spouse’s debt after separation?

What happens if one spouse doesn’t want a divorce in Canada?

How do I leave a marriage with children and no money?

Can I leave a marriage if I have no savings?

Struggling with debt during separation or divorce?

What to read next

Surplus income limits in Canada – updated for 2026