Debt Relief in Manitoba: Consumer Proposals, Bankruptcy & Your Rights (2026)

Manitoba has the longest limitation period in Western Canada at 6 years, giving creditors three times longer to sue you compared to neighbouring Saskatchewan or Ontario. Combined with 70% wage garnishment protection and minimum exemptions for families, Manitoba residents face extended exposure to legal action but retain solid wage protections.

Your Rights as a Debtor in Manitoba

Manitoba residents have specific consumer protections when dealing with debt collectors. The Consumer Protection Office oversees collection practices and enforces provincial consumer protection rules.

Debt collectors operating in Manitoba must follow regulations about contact frequency, timing, and disclosure. They cannot use harassment, threats, or intimidation tactics. Collectors cannot contact you at unreasonable hours or discuss your debt with unauthorized third parties.

You have the right to request written communication only, dispute debts you believe are incorrect, and file complaints about abusive collection practices. Understanding these rights helps you navigate collection calls while protecting yourself from violations.

How Long Can Creditors Sue for Debt in Manitoba?

Under Manitoba’s Limitation of Actions Act, creditors have 6 years to commence legal action to collect most debts. This is the longest limitation period in Western Canada.

The 6-year clock runs from:

• The date of your last payment, OR
• The date you last acknowledged the debt in writing, OR
• The date the cause of action arose (when you first defaulted)

Manitoba vs Neighbouring Provinces

This means a creditor in Manitoba has three times longer to sue you than if you lived in Saskatchewan just across the border. The extended limitation period significantly impacts debt strategy for Manitoba residents.

What the 6-Year Period Means for You

Manitoba’s longer limitation period means:

• Creditors can threaten legal action for 6 years instead of 2
• You’re exposed to potential wage garnishment for a longer period
• Debt settlement may be harder since collectors have more time
• The limitation period and credit reporting period are roughly aligned

Once a debt becomes statute-barred after 6 years, creditors can still call and send letters, but they cannot successfully sue you in court. You can raise the limitation period as a legal defence if sued after the 6-year window.

For more information on how limitation periods work across Canada, see our guide on the statute of limitations on debt in Canada.

Debts With Different Limitation Periods

Not all debts follow the standard 6-year rule:

• Credit cards and personal loans: 6 years
• CRA income tax debt: 10 years (federal rules)
• Federal student loans: 6 years (matches Manitoba’s period)
• Court judgments: 10 years (once judgment is entered)
• Child and spousal support: No limit

Making any payment or acknowledging the debt in writing restarts the 6-year clock. Be extremely cautious about making “goodwill payments” on old debts, as this can give creditors another 6 years to pursue legal action.

How Much Can Creditors Garnish From Your Wages?

Manitoba’s Garnishment Act provides solid middle-ground wage protection with dependent-based minimums.

Manitoba Wage Exemption Rules

• 70% of wages are exempt from garnishment
• Minimum exemption: $250 per pay period (no dependents) or $350 per pay period (1+ dependents)
• Maximum garnishment: 30% of your wages

The minimum exemptions provide crucial protection for lower-income workers and families. These thresholds ensure you keep enough income to meet basic needs regardless of the 70% calculation.

How Manitoba’s Garnishment Works

For lower-income earners, the minimum protected amounts provide additional safeguards beyond the 70% rule.

Manitoba vs Other Provinces

Manitoba’s 70% protection is on par with most provinces and significantly better than Alberta’s 50% exemption.

Use our wage garnishment calculator to verify if your garnishment exceeds legal limits in Manitoba.

What Are the Rules for Debt Collectors in Manitoba?

Manitoba’s consumer protection rules prohibit collectors from using harassment, threats, or intimidation when pursuing debts.

Prohibited Collection Practices

Collectors in Manitoba cannot:

• Use threatening, abusive, or intimidating language
• Make false or misleading statements about the debt or their authority
• Contact you at unreasonable hours (generally restricted to 7am-9pm weekdays)
• Contact third parties about your debt except to verify employment or obtain contact information
• Use excessive call frequency that constitutes harassment
• Misrepresent their identity or legal authority
• Add unauthorized fees to the debt

Your Rights When Dealing with Collectors

You have the right to:

• Request all communication be in writing
• Dispute the debt and request verification
• Ask the collector to stop contacting you
• Raise the limitation period as a defence if sued after 6 years
• File a complaint with the Consumer Protection Office for violations

Filing a Complaint

If a collector violates Manitoba rules, contact the Consumer Protection Office to file a complaint. Document all interactions including dates, times, what was said, and names of collectors.

Debt Relief Options in Manitoba

Given Manitoba’s 6-year limitation period, waiting for debts to become statute-barred often isn’t the best strategy. During those 6 years, you remain exposed to lawsuits, wage garnishment, and ongoing collection harassment.

Manitoba residents have several debt relief options that provide faster resolution and legal protection:

• Consumer proposals: Reduce total debt by 60-80% while keeping all assets
• Bankruptcy: Eliminate most debts if you have little income or assets
• Debt consolidation: Combine multiple debts into a single loan with lower interest
• Credit counselling: Work with a non-profit counsellor to create a debt management plan
• Debt settlement: Negotiate reduced lump-sum payments with creditors

Each option has different impacts on your credit, costs, and legal protections. Compare all debt relief options using our debt relief comparison tool.

Consumer Proposals in Manitoba

A consumer proposal is a legal agreement administered by a Licensed Insolvency Trustee that reduces your total debt by 60-80%. This is often the best option for Manitoba residents because it provides immediate legal protection without the extended 6-year wait.

How Consumer Proposals Work

A Licensed Insolvency Trustee reviews your financial situation and proposes a settlement to your creditors. You typically pay 30-35 cents per dollar owed over 3-5 years through fixed monthly payments.

Once filed, a consumer proposal immediately triggers a legal stay of proceedings that:

• Stops all wage garnishment
• Halts collection calls and letters
• Prevents creditors from suing you
• Freezes interest charges
• Protects you for the duration of the proposal

Manitoba Consumer Proposal Statistics

In Winnipeg and throughout Manitoba, Licensed Insolvency Trustees offer free consultations to review your options and calculate potential proposal payments.

Why Proposals Beat Waiting in Manitoba

Given Manitoba’s 6-year limitation period, a consumer proposal provides:

• Faster resolution: 3-5 years instead of 6 years
• Immediate protection: Legal stay stops garnishment and lawsuits immediately
• Debt reduction: Pay only 30-40% of total debt instead of 100%
• Asset protection: Keep your home, car, and RRSPs
• Credit rehabilitation: R7 rating clears 3 years after completion

Learn more about how consumer proposals work and calculate your potential payment using our consumer proposal calculator.

Bankruptcy in Manitoba

Bankruptcy eliminates most debts through a legal process administered by a Licensed Insolvency Trustee. While more severe than a consumer proposal, bankruptcy may be the better option if you have little to no income or your debts exceed $250,000.

How Bankruptcy Works in Manitoba

When you file bankruptcy in Manitoba:

• Most unsecured debts are eliminated (credit cards, personal loans, medical bills)
• A legal stay of proceedings stops all collection action and garnishment
• You surrender non-exempt assets to the trustee
• You make income-based payments if your earnings exceed certain thresholds
• You attend two financial counselling sessions
• You receive a discharge after 9-21 months for a first bankruptcy

Manitoba Bankruptcy Exemptions

Manitoba law protects certain assets from seizure in bankruptcy:

• $2,500 in home equity
• $3,000 in vehicle equity
• Household furnishings and personal effects up to $4,500
• Tools of trade up to $7,500
• RRSPs (except contributions in the 12 months before bankruptcy)
• Certain insurance policies and pensions

Bankruptcy impacts your credit more severely than a consumer proposal, with an R9 rating remaining on your credit report for 6-7 years after discharge.

For more details, see our comprehensive guide on bankruptcy in Canada.

Finding a Licensed Insolvency Trustee in Manitoba

Only federally licensed trustees can administer consumer proposals and bankruptcies in Manitoba. Find a Licensed Insolvency Trustee using the Office of the Superintendent of Bankruptcy directory.

Licensed Insolvency Trustees operate throughout Manitoba including:

• Winnipeg – Largest city with multiple trustee offices
• Brandon – Western Manitoba regional centre
• Steinbach – Serving southeastern Manitoba
• Portage la Prairie – Central Manitoba
• Thompson – Northern Manitoba communities
• Selkirk, Dauphin, Flin Flon – Regional coverage

Most trustees offer free initial consultations to review your financial situation and explain your options. Many now provide video consultations for residents in rural areas or northern communities.

What to Expect at Your Consultation

During your free consultation, the trustee will:

• Review your income, expenses, assets, and debts
• Explain the difference between consumer proposals and bankruptcy
• Calculate estimated proposal payments or bankruptcy costs
• Discuss how Manitoba’s 6-year limitation period affects your situation
• Answer questions about timing and credit impacts
• Outline next steps if you choose to proceed

There is no obligation to file after a consultation. Use this opportunity to understand all your options before making a decision.

How to File a Complaint Against a Debt Collector

If a collection agency violates Manitoba regulations, file a complaint with the Consumer Protection Office.

Filing a Complaint

Contact Information:

• Online: Consumer Protection Office
• Phone: 1-800-782-0067
• Address: Consumer Protection Office, 258-114 Garry Street, Winnipeg, MB R3C 4V4

What to Document

Before filing a complaint, gather:

• Date and time of each contact
• Names of collectors you spoke with
• Recording of calls if possible
• Copies of letters and emails
• Details of prohibited practices (threats, excessive calls, unauthorized disclosures)
• Account numbers and creditor information

The Consumer Protection Office investigates complaints and can impose penalties on collection agencies that violate provincial regulations.

Next Steps for Manitoba Residents

If you’re dealing with debt in Manitoba, don’t assume you need to wait out the full 6-year limitation period. Consumer proposals provide immediate legal protection and resolve your debt in 3-5 years instead of 6.

Recommended Next Steps

1. Calculate your options: Use our consumer proposal calculator to see how much debt you could eliminate and estimate monthly payments

2. Verify garnishment limits: Check if your wage garnishment exceeds Manitoba’s legal limits with our wage garnishment calculator

3. Compare all solutions: Review the costs, benefits, and credit impacts of all debt relief options using our debt relief comparison tool

4. Consult a Licensed Insolvency Trustee: Book a free consultation to review your specific situation and understand which option provides the best outcome

Related Provincial Guides

• Saskatchewan debt relief guide – Compare Manitoba’s 6-year limitation to Saskatchewan’s shorter 2-year period
• Ontario debt relief guide – See how Ontario’s 2-year limitation and stronger 80% wage protection differ from Manitoba

Manitoba’s 6-year limitation period means creditors have three times longer to sue you than in Saskatchewan or Ontario. Consumer proposals provide immediate legal protection, reduce debt by 60-80%, and resolve your situation in 3-5 years instead of waiting 6. Take action now to regain control of your financial situation.