Oddly, this is one of the single, most universal question I get asked by people inquiring about filing for bankruptcy. Think of how long the odds are of winning, yet almost everybody worries about it being taken away if they win. That is so Canadian.
‘Debt consolidation’ can mean many things, but the basics are: any effort by a person to convert multiple debts into one on a monthly basis with a view to eventually paying off those debts.
A common question Licensed Insolvency Trustees field is “How is my credit rating affected if I file a bankruptcy or a proposal?” Generally by ‘debt consolidation’ they are referring to a Consumer Proposal, which is a form of that. But let’s deal with bankruptcy first.