Debt Forgiveness – 5 Things You Do Not Know

Each and every day we help people navigate their financial struggles. Whether someone got sick, lost their job, became separated from their spouse, or made poor decisions in the past and want to rectify them; there is always a solution to deal with debt. You hear the term debt forgiveness thrown around all the time. But the truth is that very few people know much about debt forgiveness, especially in Halifax, Nova Scotia.

Without making you wait any longer here are 5 things you DON’T know about debt forgiveness.


Debt can be a symptom of any number of problems and life circumstances. However, it is important to understand that YOU ARE NOT YOUR DEBT.

At Halifax Debt Freedom, we'd love to discuss how we can help you become debt free.

***Quick Note – We recorded a podcast on this very topic. You can check it out here: Escaping Debt Podcast – Episode 1

Debt Forgiveness is possible

By and large, the biggest thing people are not aware of is that debt forgiveness is actually something that can occur. The process first involves understanding your financial situation. You then need to determine the best possible option to deal with your debt. Once that has been completed you will proceed with your chosen debt relief method. If your creditors agree to the new amount, they ‘forgive’ the difference between what you owed and the newly agreed-upon debt amount.

You don’t have to go bankrupt to get debt forgiveness

It’s true! Bankruptcy is the last resort option to deal with debt. In fact, while most people think this is their only option they often have other options that suit their lifestyle better. While bankruptcy can be an effective way to eliminate debt, it comes with the harshest penalties and consequences. Instead, you may want to opt for a less-severe option such as a consumer proposal.

Debt Forgiveness comes with consequences

Wow – if I had a dollar for every time we’ve heard people say that people simply load up on debt and then restructure it to get off scot-free I would be rich. It is simply naive to think that if a creditor is willing to reduce the amount of money owed that there will be no consequences. There is a credit impact to most restructuring methods, especially those that involve debt forgiveness. While this impact might be a big deal to those who are not struggling and have good credit it is of little concern to someone who is already struggling.

Our office has personally assisted thousands of consumers to understand their debt relief options. We have never encountered an individual who purposefully tried to ‘cheat’ the system.

Debt Forgiveness isn’t free

While it is true that debt forgiveness isn’t free, the truth is that there are no debt relief options that are free in Canada. The cost ranges depending on the option you choose. Because there is a cost, you need to ensure you have someone working exclusively for you. As members of the Canadian Debtors Association, we exclusively represent consumers who are struggling with debt. We help them understand their options and assist them in implementing their chosen debt relief plan.

In Nova Scotia, we are the ONLY firm that operates in this manner. Unfortunately, most of the ‘players’ in the industry are funded directly or indirectly from creditors.

If you are struggling with debt and want an unbiased option, reach out for help. We wrote an extensive article about why 4 Pillars should always be your first choice. Check it out here.

Debt Forgiveness isn’t just for low-income earners

Most people think that only low-income earners would qualify for debt forgiveness. Unfortunately, these individuals can be more challenging to work with. Not because we don’t want to help, but because there are no free debt restructuring options (As mentioned above). As incomes get lower, it becomes harder and harder to find an affordable relief option. Even bankruptcy can become unaffordable at certain income levels.

Debt Relief, and ultimately debt forgiveness, is available to anyone who is struggling with debt that cannot seem to get ahead. It is just important to make sure you understand all of your options.

Debt Relief SpecialistThis article was written by David Moffatt. A Senior Debt Relief Specialist with 4 Pillars Halifax. 4 Pillars has assisted in creating plans that have helped save Canadians over $1 Billion dollars of consumer and tax debt since 2002. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring strategies can help you cut your debt by up to 80% with less than 3% of our clients ever getting into deep financial difficulties again.

If you are struggling with debt please reach out. It hurts to continue to suffer financially. 4 Pillars Halifax services Halifax, Dartmouth, Bedford, Sackville and the entirety of HRM.