Renters in Winnipeg and across Manitoba have faced significant financial strain in recent years. Between June 2022 and June 2023, the average rent for a one-bedroom unit in Winnipeg rose by 8.3%. This surge in housing costs has coincided with high inflation, making it even harder for renters to keep up with their financial obligations.
If you’re struggling to make rent, you’re not alone. But you do have options—especially when it comes to managing your debt. A Consumer Proposal or Bankruptcy may provide the financial relief you need to avoid eviction and regain control of your budget.
Understanding the Rent Crisis in Manitoba
- From a Landlord’s Perspective: Landlords are facing higher costs due to rising prices for construction materials, labour, and property maintenance. Many rely on mortgages to finance their properties, and with interest rates climbing, they may need to increase rent just to cover their loan payments.
- From a Renter’s Perspective: At the same time, renters are dealing with rising costs across the board. The Manitoba Consumer Price Index showed a 3.4% inflation rate between May 2022 and May 2023, making essentials like groceries, transportation, and utilities more expensive. Unfortunately, there are no new regulations on the horizon that would cap rent increases or provide stronger renter protections.
With both landlords and tenants feeling the financial squeeze, the situation is unlikely to improve soon.
Reassessing Your Budget
If rent is becoming difficult to afford—or if you’re already making late payments—it’s time to take a closer look at your finances. Rent is a critical expense. Missing payments can lead to eviction, which can disrupt your entire life.
To avoid this, review your budget and cut back on non-essential expenses where possible. However, if your biggest financial burden is debt payments, you may need a more structured solution to free up money for rent.
Exploring Your Debt Relief Options
If debt payments are making it hard to cover rent, you may be able to negotiate with your creditors. Options include:
- Asking for an extended repayment period to reduce your monthly payment
- Requesting a lower interest rate
- Transferring your debt to a lender with better terms
However, with rising interest rates, lenders may not be willing to offer better terms. If you’re unable to restructure your debt on your own, a Consumer Proposal or Bankruptcy could provide a more effective solution.
How a Consumer Proposal or Bankruptcy Can Help
If debt is preventing you from staying on top of your rent, it’s important to act before eviction becomes a real possibility. A Licensed Insolvency Trustee (LIT) can assess your situation and recommend the best debt relief solution for you.
1. Consumer Proposal – A Solution That Can Protect You from Eviction
If you’re already behind on rent, you might be wondering if a Consumer Proposal can help. In Manitoba, once a Consumer Proposal is filed, your landlord cannot evict you for past rent arrears while the proposal is being reviewed or if it has been accepted.
- Your rent arrears will be included in the Consumer Proposal
- Your monthly debt payments will become more affordable
- You must continue paying rent on time as you move forward in order to remain in your home
2. Bankruptcy – Will It Stop Eviction?
The rules around eviction and bankruptcy are similar. In Manitoba, if you file an Assignment in Bankruptcy, and you are behind in your rent, the unpaid rent is included in the bankruptcy. You cannot pay that back-rent during the bankruptcy, but you must keep current rent paid in full and on time or you can be evicted because of arrears in your current rent. The Stay of Proceedings that prevents collection only pertains to debt acquired prior to filing the Assignment in Bankruptcy. This means that Bankruptcy will protect you from eviction due to past rent arrears.
Why You Should Reach Out Sooner Rather Than Later
If you’re struggling to make rent, don’t wait until eviction is on the table. The earlier you seek help, the more options you have.
By dealing with your debt before rent becomes an issue<spa, you can:
- Avoid late payments and maintain a good relationship with your landlord
- Reduce your financial stress and prevent eviction
- Regain control of your budget and build financial stability
A can help you explore all of your options—including a Consumer Proposal or Bankruptcy—to determine the best path forward.
If your debt is becoming unmanageable, be proactive. Call us at 204-925-6400 or email to book a free, no-obligation consultation and find out how we can help you stay in your home.
Leigh C. Taylor, LIT
