Spergel https://www.spergel.ca Licensed Insolvency Trustees Thu, 16 Apr 2026 18:55:06 +0000 en-CA hourly 1 https://wordpress.org/?v=6.9.4 https://www.spergel.ca/wp-content/uploads/2025/07/Spergel_Favicon.webp Spergel https://www.spergel.ca 32 32 Why are groceries so expensive in Canada? (2026 update) https://www.spergel.ca/learning-centre/why-are-groceries-so-expensive/ Thu, 16 Apr 2026 17:02:32 +0000 https://www.spergel.ca/learning-centre/why-are-groceries-so-expensive/

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:

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.

What to read next

]]> The cost of living in British Columbia (2026): monthly expenses, cities, and income needed https://www.spergel.ca/learning-centre/the-cost-of-living-in-bc/ Mon, 13 Apr 2026 13:48:59 +0000 https://www.spergel.ca/learning-centre/the-cost-of-living-in-bc/

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:

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:

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.

What to read next

]]> The cost of living in Ontario in 2026: monthly expenses, cities, and salary needed https://www.spergel.ca/learning-centre/the-cost-of-living-in-ontario/ Wed, 25 Mar 2026 13:47:22 +0000 https://www.spergel.ca/learning-centre/the-cost-of-living-in-ontario/

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 typeMonthly 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 categoryMonthly 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

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

Utilities and internet

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:

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.

What to read next

FAQs

 A single adult typically needs $48,000–$55,000/year, while families often need $85,000+ depending on location

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

 Ontario is one of the most expensive provinces, but affordability varies widely by city and lifestyle.

 Yes – cities like Windsor, Kingston, and Sudbury offer significantly lower housing costs

]]> Why you should never pay a collection agency https://www.spergel.ca/learning-centre/why-you-should-never-pay-a-collection-agency/ Fri, 20 Mar 2026 13:46:11 +0000 https://www.spergel.ca/learning-centre/why-you-should-never-pay-a-collection-agency/

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:

  1. Confirm the debt actually belongs to you
  2. Request written proof of the debt
  3. Check the date of last payment
  4. Determine whether the statute of limitations has expired
  5. 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.

What to read next

  • What happens if you don’t pay your debts in Canada?
  • Does owing taxes affect your credit score?
  • Consumer proposal vs bankruptcy: what’s the difference?
  • How to stop collection calls in Canada

 

]]> Real life client story: She didn’t just file, she finished. A 60-month consumer proposal https://www.spergel.ca/learning-centre/stacie-success-story/ Thu, 05 Mar 2026 16:10:06 +0000 https://www.spergel.ca/?p=16624
  • Meet Stacie, a young adult navigating early financial independence
  • Family: Married
  • Location: Regina, SK
  • Insolvency solution: Consumer proposal

Stacie’s story reflects a key finding of our 2025 study on Debt Load and the Impact to Psychological Wellbeing: debt places real emotional pressure on Canadians, and stigma often prevents people from seeking help until they feel overwhelmed.

Before Spergel: “I was at the end of my rope”

During her second and third year of university, Stacie was living off campus and supporting herself on a minimum-wage income. Like many students adjusting to independence for the first time, everyday expenses quickly added up.

“I was a broke college student living paycheque to paycheque.”

Financial decisions she made while trying to keep up with bills eventually caught up with her. Without a safety net, the stress snowballed.

“I felt alone. It was a whirlwind of emotions – sad, overwhelmed, and honestly I was at the end of my rope.”

Taking the first step: “I realized I needed help.”

The turning point came when Stacie accepted that she couldn’t fix the situation on her own.

“I realized the only way to solve it was to ask for help.”

After talking with family and friends, she began searching for professional debt help and was connected with Spergel through an insolvency office in Regina.

Even with that support, reaching out wasn’t easy.

“There was relief, but also fear of judgment. I didn’t know what would happen or if anyone could really help me.”

That first conversation with the Spergel team quickly eased those fears.

The process: “It was surprisingly stress-free.”

What stood out most to Stacie was how straightforward and supportive the consumer proposal process felt.

“I was surprised by how easy it was. Questions were answered quickly and clearly. It was so stress-free.”

As the months went on, Stacie didn’t just feel relief, she felt stability. With a clear payment plan and an end date she could count on, the fear that used to follow her everywhere started to fade. As the process progressed, she noticed a dramatic shift in her mental wellbeing.

Throughout her proposal, the team remained a steady presence as Stacie’s life evolved. When she got married and had questions about how it might affect her consumer proposal, support was always available.

“They were wonderful. I never felt left in the dark. They were there from day one to the end.”

Within the first few years, she began to feel genuine relief.

“I could see my life coming back into order. I knew I was moving toward financial freedom.”

Life during and after: “The stress lifted.”

“I saw such a difference in my stress levels. I knew I’d set my mind to something and accomplished it.”

Over time, that structure changed her day-to-day life. She stopped bracing for the next call or the next surprise, and started focusing on what was in front of her. When big life moments happened, the support stayed consistent.

Today, she describes her financial life as a full transformation.

“It feels like that looming thundercloud is gone. I’m free to rebuild what I lost years ago.”

Her experience mirrors findings in Spergel’s Debt Load and the Impact to Psychological Wellbeing study, where debt was shown to strain emotional wellbeing and relationships – with 33% of respondents saying their relationships were affected and 35% reporting stress on family life. Structured debt support helped replace that pressure with stability and a renewed sense of control.

Looking back: “Allow yourself to be vulnerable.”

For anyone hesitant to seek help, Stacie’s advice is direct and compassionate:

“Don’t be scared. It will be the best decision you make. Allow yourself that vulnerability to get the help you need – you’re not the only person in this situation.”

To her, a fresh start means more than numbers on a balance sheet.

“It means freedom. The ability to look at my future and see things I never thought were possible – traveling, building a life, and living the way I want.”

Expert Commentary: Chris Galea, Licensed Insolvency Trustee at Spergel

“Stacie’s story represents a generation of young Canadians learning financial independence in a high-pressure environment. Her journey shows how early intervention and compassionate guidance can turn overwhelming debt into a structured path toward confidence and long-term stability.”

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]]> Real life client story: When a business didn’t work out, debt followed – and asking for help changed everything https://www.spergel.ca/learning-centre/esther-success-story/ Thu, 05 Mar 2026 16:10:02 +0000 https://www.spergel.ca/?p=16611
  • Meet Esther, a parent balancing family stability and financial pressure
  • Family: Married, mother of two
  • Location: Toronto, ON
  • Age: Late 30s
  • Insolvency solution: First-time consumer proposal (2025)

Esther’s story reflects the themes highlighted in our 2025 study on Debt Load and the Impact to Psychological Wellbeing Study: the emotional toll of debt, the pressure parents feel to stay strong, and the relief that comes with clarity and compassionate support.

Before insolvency: “I wanted to build a better future for my family.”

Esther started her business with a clear purpose: to create stability and a better future for her family. Like many small business owners, she believed that dedication and hard work would eventually pay off.

“I invested a lot of time and effort. I believed commitment would lead to success.”

After about two years, however, it became clear that her income was unstable and the financial pressure was growing. Continuing the business would only increase stress on her family.

“I realized that continuing would put more strain on my family, so I made the difficult but responsible decision to stop.”

At the same time, she and her spouse were both unemployed. To cover daily living expenses, the family relied on credit, government benefits, and support from parents and relatives.

“Asking for help wasn’t easy. I value independence.”

Still, she came to see that support as temporary – a bridge rather than a failure.

Mental health impact: “I questioned myself.”

The loss of the business and growing debt deeply affected Esther’s confidence.

“At first, it made me question who I was. I had tied my identity to being able to provide.”

She experienced moments of disappointment and self-doubt, emotions she now recognizes as common for people in similar situations.

“I learned that financial setbacks don’t define a person’s worth.”

Day to day, her priority was protecting her children from the stress she was carrying.

“I focused on keeping routines and creating a calm environment for my children.”

Taking things one day at a time – and focusing on small, manageable tasks – helped her cope during an emotionally difficult period.

Her experience mirrors our study’s findings: 82% of Canadians carrying unmanageable debt reported constant worry, and 35% said their family life suffered under the strain.

The turning point: “I didn’t want uncertainty anymore.”

Eventually, the stress became too heavy to manage alone.

“I wanted clear information and professional guidance instead of uncertainty.”

Esther was referred to Spergel by a friend who had already had a positive experience. Her first conversation with our Debt Solutions Manager, Mina, marked a significant shift.

“She showed empathy and told me not to worry – that this wasn’t a personal failure.”

That reassurance made a lasting difference.

“Feeling understood reduced the pressure and fear I was carrying.”

Meeting with Mina and Licensed Insolvency Trustee, Graeme, Esther felt calm, respected, and listened to.

“They explained everything clearly and patiently. The situation finally felt manageable.”

While relief came early, trust built gradually – and naturally – as the process continued with consistent, supportive communication.

The process: “I realized I wasn’t alone.”

Working with the Spergel team helped Esther reframe her situation.

“Getting help isn’t a failure. It’s taking responsibility for your family’s future.”

The consumer proposal Esther decided to file provided clarity, structure, and a realistic plan forward – replacing fear with direction.

Aftermath: “I’ve learned to be kinder to myself.”

Since filing her consumer proposal, Esther’s outlook has shifted – both financially and personally.

“I now see money as important, but not as a measure of my worth.”

She describes becoming more compassionate with herself and more understanding of others facing similar struggles.

One of the most meaningful outcomes has been the lessons she’s been able to pass on to her children.

“I want them to know that challenges are part of life, and asking for help is not a weakness.”

Her message to others facing the same conflict between pride and financial reality is clear:

“You’re not alone. Choosing stability and support for your family is a strong and brave decision. With the right guidance, things can improve.”

Expert Commentary: Graeme Hamilton, Licensed Insolvency Trustee

“Esther’s story reflects what we see every day – capable, hardworking parents facing overwhelming pressure when business and income don’t go as planned. Her experience mirrors the emotional strain highlighted in our study on Debt Load and the Impact to Psychological Wellbeing, and her journey shows how clarity, empathy, and structured support can help families move forward with dignity and hope.”

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]]> Real life client story: From injury to financial crisis: how a pro athlete rebuilt stability through a consumer proposal https://www.spergel.ca/learning-centre/meshack-success-story/ Thu, 05 Mar 2026 16:09:58 +0000 https://www.spergel.ca/?p=16630
  • Meet Meshack, a young parent with unpredictable income
  • Family: Married, father of two
  • Location: Hamilton, ON
  • Age: Early 30s
  • Insolvency solution: First-time consumer proposal (2025)

Meshack’s story reflects a growing reality highlighted in our Debt Load and the Impact to Psychological Wellbeing Study – where unpredictable incomes, job loss, and sudden disruptions leave Canadians experiencing anxiety, instability, and overwhelming pressure to support their families.

Before insolvency: “Life changed quickly - and so did my sense of stability.”

As a professional basketball player, Meshack was used to a steady income, housing provided by teams overseas, and the financial structure of a career where many essentials were covered. He describes it as a lifestyle that “spoils” athletes without them realizing it – housing, transportation, and sometimes food were all taken care of.

When injury forced him off the court, everything changed. His income paused immediately, and unlike overseas play, nothing was covered.

“Going from a professional athlete with everything paid for to having a normal job and normal expenses was a huge adjustment.”

The shift didn’t damage his identity – his role as a father grounded him – but it dramatically changed his daily life. As an athlete, he trained 2-4 hours a day and had time for his family. Now, working full-time to support them meant long shifts and less time at home.

“Not seeing my family as much was hard, but I knew it was a sacrifice I had to make for the long run.”

His faith also shaped how he navigated the pressure:

“I don’t feel pressure to keep a certain image. The only image I care about is being a follower of Jesus Christ.”

Mental health impact: “I was anxious about where my next paycheque was going to come from.”

With two young children and no stable income from basketball, anxiety around finances grew quickly.

“Having kids in this society isn’t easy. I was anxious about where my next pay cheque would come from.”

The loss of team-supported housing and benefits meant suddenly managing:

  • Rent and utilities
  • Groceries for a family of four
  • Transportation
  • Debt payments
  • Day-to-day living expenses

All without the financial cushioning he was used to as an athlete.

His mental health was strained, but he didn’t hide his reality:

“I never hide my financial struggles from family or close friends. My wife, especially, was my biggest supporter.”

The stress he describes reflects our study’s findings: 82% of survey participants reporting constant worry, 74% reporting poor sleep; and over half reporting depression related to debt.

His wife, family, and close circle were a major source of strength during this period, offering support and encouragement as he worked through the uncertainty of lost income.

The turning point: “I checked my bank account and had less than $500.”

The decisive moment came when he realized how close his family was to a full financial crisis.

“I checked my bank account one day and had less than $500 and a ton of debt. With two kids and being married, that was unacceptable. Something had to change fast.”

He knew he could work and earn income again – but the debt was the barrier keeping him stuck. So he began researching solutions and found Spergel.

His experience with Douglas and Rob was immediately reassuring.

“Both were very transparent men. They made the experience easy and welcoming.”

“Douglas especially was informative and made everything feel very trustworthy. Five stars to him.”

He entered the process with an open mind and quickly saw the potential of a consumer proposal to stabilize his family’s future.

The process: “For the sake of my family, I needed a way out - and Spergel made it easy.”

Meshack says the process felt far less intimidating than he expected:

  • Clear explanations
  • No judgment
  • A calm, structured path forward
  • Practical help from people he trusted

“Debt help was not something I ever considered. But I was in a hole, and for the sake of my family, I had to find a way out.”

The consumer proposal offered:

  • Manageable payments that reduce debt by up to 80%
  • Protection from creditors
  • A legal, government-approved plan
  • Immediate emotional relief

Aftermath: “There was a large exhale when we were accepted.”

When the consumer proposal was approved, the shift in Meshack’s mental health was immediate.

“We finally saw a way out and could build a plan for a debt-free future.”

Financial stability opened the door to better routines and better health:

“Financial security is huge. If your mind is broken or weak, your body will follow. Being stable helped me eat better, stop stress eating, and make time for myself again.”

He has also reframed how he views money, risk, and the future of his career.

“In professional sports, the world is a revolving door. You need a back-up plan. Save, invest, use wisdom, and don’t assume your career will always be stable.”

Expert commentary: Gillian Goldblatt, Partner and Licensed Insolvency Trustee

“Meshack’s story illustrates how even high performers can face sudden financial collapse due to factors beyond their control. His experience is a powerful reflection of our study’s findings – how income instability, job loss, and family pressures create profound mental health strain. The transformation in his emotional wellbeing after filing a consumer proposal shows just how essential structured, judgment-free support can be.”

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]]> Real life client story: How a consumer proposal helped Ruby rebuild her mental health and stability https://www.spergel.ca/learning-centre/ruby-success-story/ Thu, 05 Mar 2026 16:09:53 +0000 https://www.spergel.ca/?p=16635
  • Meet Ruby, a young professional restarting in a new province
  • Family status: Single
  • Location: Hamilton, ON
  • Age: Early 30s
  • Insolvency solution: First-time consumer proposal (2025)

Ruby’s experience reflects many of the themes uncovered in our Debt Load and the Impact to Psychological Wellbeing Study: the emotional cost of debt, the role of stigma, and the profound mental health improvements Canadians report after insolvency.

Before insolvency: “I was starting over. Then it all collapsed.”

When Ruby moved from Quebec to Ontario, she carried only moderate debt and a sense of hope. She started a cleaning business with her sister during COVID, went back to school, and slowly began paying down what she owed.

“I was making progress, responding to debt collectors, making payments on my BMO credit card, and finishing my last semester of school.”

But as the business grew to 11 locations, everything imploded. Her sister took the locations and started a new company with her husband, leaving Ruby suddenly without business income.

Her savings became her only lifeline for five months. At the same time, she moved into a new apartment and started a new job – but by then, her savings were gone and she was living in overdraft, relying on her parents and partner to afford groceries.

“At 31, I needed my parents to help buy groceries. It was humiliating.”

The final blow: when she went to pay her rent, her entire paycheque was garnished by RBC.

“I was constantly living on edge, stressed about money, and struggling to pay my bills.”

Mental health impact: “Every day felt like a battle.”

The debt didn’t just affect her bank account – it affected her mind and body.

“My financial situation significantly affected my mental health. I experienced increased depression and suicidal thoughts, and the stress began to take a physical toll.”

She describes:

  • Depression and suicidal ideation
  • Chain-smoking a pack a day
  • Using alcohol to cope
  • Withdrawing from friends because she couldn’t afford to go out and felt like “a loser”

“Every day felt like a battle. I felt like I had no fight left in me, and even when I was earning money again, it still never seemed enough because of the large debt I was facing.”

Her experience reflects core findings in our national study, where Canadians reported:

  • 82% constant worry
  • 74% poor sleep
  • 57% depression
  • 17% severe psychological distress

Debt wasn’t just affecting her finances – it was consuming her mental health.

The turning point: “On my 34th birthday, I just cried.”

Ruby had reached out to a debt counsellor in 2023 – but the interaction left her feeling worse, not better.

“They were not welcoming. It put me in an even more negative headspace and made me feel trapped.”

She carried that shame for nearly two years, delaying help and trying to cope alone. On her 34th birthday, everything came to a head:

“When my birthday came, all I could do was cry; I felt completely hopeless.”

She prayed for guidance and finally put her pride aside.

“I remember praying and asking God for guidance. I finally put my pride aside and started researching options for filing a consumer proposal.”

That’s when she found Spergel, through Google reviews and online research. Making the first call was terrifying:

“Honestly, I can’t repeat it enough: I felt ashamed and scared.”

But that call changed everything. She spoke with Douglas – who, it turned out, was from her hometown.

“The conversation flowed naturally, and I never felt so comfortable in my life. That first conversation alone made me feel like I was moving out of a dark tunnel and into the light. I felt hopeful again.”

The process: “For the first time, I didn’t feel like a failure.”

Working with Douglas and the Spergel team, Ruby finally felt seen and supported – not judged.

“Having someone non-judgmental, like Douglas and the rest of the team, reassure me that I am not alone, that I’ll be okay, and that Spergel would take care of everything, gave me a true sense of hope and belonging.”

The consumer proposal gave her:

  • Protection from overwhelming debt
  • An end to collection pressure and wage garnishment
  • A clear, structured, legal path forward

It turned a situation that felt like a dead end into something she could manage.

Aftermath: “What is depression now? I feel happy.”

Post-filing, the change in her emotional wellbeing has been dramatic.

“Oh man, what is depression now? I feel happy. I feel confident and in control of my life again.”

Through mandatory credit counselling and new habits, she’s rebuilt her relationship with money:

  • Checking flyers before buying groceries
  • Withdrawing only the cash she needs each week
  • Avoiding purchases she can’t afford
  • Giving every dollar a job (bills, food, leisure, entertainment)

Her story aligns directly with our study’s finding that mental health significantly improves after insolvency.

Her message to others who feel too embarrassed to ask for help is powerful:

“Pride is a deadly thing, and nothing under this sun is new. Put your pride aside and seek the help you need!”

Expert commentary: Rob Kilner, Licensed Insolvency Trustee

“Ruby’s story shows exactly what our study uncovered: that debt isn’t just a financial problem – it’s a mental health crisis. Her experience mirrors what we see in the data: constant worry, sleepless nights, depression, even suicidal thoughts. And like 87% of the people in our study, she reports a significant improvement in her mental health after filing a consumer proposal. Her journey demonstrates why compassionate, judgment-free help is so critical.”

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]]> Surplus income limits in Canada – updated for 2026 https://www.spergel.ca/learning-centre/surplus-income-limits/ Wed, 04 Mar 2026 14:51:10 +0000 https://www.spergel.ca/?p=11887

Surplus income refers to the portion of household net income that exceeds a government-set threshold based on family size. If your income is above this limit, you are required to contribute 50% of the excess toward your 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 2025.

Current surplus income limits – monthly thresholds (2025)

Household size Threshold (CAD)
1 $2,666
2 $3,318
3 $4,080
4 $4,953
5 $5,618
6 $6,336
7 $7,054

The Office of the Superintendent of Bankruptcy typically updates surplus income limits annually. These limits apply across Canada, regardless of province. The 2026 thresholds have not yet been released, so the table above reflects the most recent limits (2025). We will update this page as soon as the new figures are published.

When will the 2026 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 2026 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 2025 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
2025 threshold for two people: $3,318

Step 1
$3,800 − $3,318 = $482 surplus

Step 2
50% × $482 = $241 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:

  1. Determine your household size
  2. Calculate your average monthly net income
  3. Subtract the OSB surplus income threshold
  4. 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.

What to read next

FAQs

Yes. Surplus income limits are set federally under the Bankruptcy and Insolvency Act and apply across Canada.

Surplus income is calculated using net household income, meaning income after taxes and statutory deductions.

Certain allowable expenses may be considered when calculating surplus income, including:

  • Childcare expenses
  • Medical costs
  • Court-ordered support payments

A Licensed Insolvency Trustee reviews these when determining your payments.

Yes. If your income changes during bankruptcy, your required payments may also change because the calculation is based on average income over the bankruptcy period.

No. Consumer proposal payments are fixed and do not increase if your income increases.

]]> Tax Stress Survey 2026: A cash-flow stress test for Canadians https://www.spergel.ca/learning-centre/spergel-canadian-tax-stress-survey-2026/ Tue, 24 Feb 2026 14:37:33 +0000 https://www.spergel.ca/?p=16442

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 https://www.spergel.ca/learning-centre/canada-tax-deadline/ Wed, 18 Feb 2026 17:14:07 +0000 https://www.spergel.ca/learning-centre/canada-tax-deadline/

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:

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:

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.

What to read next

]]> Grocery Debt: the “New Normal” for Canadians in 2026: What Spergel’s survey reveals https://www.spergel.ca/learning-centre/grocery-debt-the-new-normal-for-canadians-in-2026/ Tue, 17 Feb 2026 15:56:27 +0000 https://www.spergel.ca/?p=16085

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.

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