ADMIN PREVIEW — Lean Recovery Roadmap — hardcoded sample data — URL never changes
Clear Ground Financial
A five-phase framework for moving from financial crisis to long-term stability. Execute phases in order. Do not skip steps. Each phase is a prerequisite for the next.
Not financial advice — informational guidance only.
Phase 1
Stabilize
Phase 2
Assess
Phase 3
Strategize
Phase 4
Rebuild
Phase 5
Advance
Stop the bleeding. Protect essentials first.
Before anything else — secure housing, power, food, and essential transport. Do not pay any unsecured debt until your survival budget is covered.
Key Actions
Calculate your survival budget (rent + utilities + food + transport only)
Stop minimum payments on unsecured debts you cannot afford
Identify secured debts (mortgage, car) — keep these current only
Contact CRA if government debt exists — set up a payment arrangement
Build a $500 emergency cash buffer before any debt repayment
Determine the legal status of each debt using DLA.
Pull your credit reports. Map every debt's Date of Last Activity (DLA). Debts past the ~2-year limitation period cannot be legally enforced. Debts approaching 6 years will fall off your report on their own.
Key Actions
Pull Equifax + TransUnion reports (free at equifax.ca / transunion.ca)
List every debt: creditor, balance, DLA date, account status
Flag debts under 2 years old — these carry active legal risk
Flag debts over 6 years old — these will age off your credit report
Send Debt Validation letters for any unverified collections accounts
Do not make any payment on old debts until DLA is confirmed
Three paths. Choose based on your debt profile and cash flow.
Once you know your debt status, you select a strategy. There is no universal right answer — it depends on your DLA dates, debt balances, income, and how urgently you need financing access.
Key Actions
Path A — Wait & Rebuild: For statute-barred debts with no urgent financing need. Let limitation periods expire and debts age off your report.
Path B — Settlement: For debts past limitation, when you have cash available later and want a clean break. Never settle before DLA is confirmed.
Path C — Consumer Proposal: For active high-balance debt with collection pressure. Legally binding, supervised process. Lower monthly payments, avoids bankruptcy.
Consult a Licensed Insolvency Trustee (free consultation) if debt exceeds $10,000 with active enforcement risk.
New behaviour moves the score. Not just removing old debt.
Credit rebuild is a 12–18 month consistent behaviour sequence. There are no shortcuts. The score responds to new positive patterns, not to removing old negatives alone.
Key Actions
Open one secured credit card — Capital One, Home Trust Equityline, or similar
Keep utilization at 1%–9% on that card (not 0%, not 30%+)
Never miss a payment — even the minimum destroys the rebuild
Consider a credit-builder loan through a credit union
Do not apply for any unsecured credit until score exceeds 660
Monitor score monthly through Borrowell or Credit Karma (soft pull only)
Structured goals, financing strategy, long-term planning.
Once stabilized, debts under control, and credit rebuilding — you begin advancing. This is where goals become accessible and financial planning replaces crisis management.
Key Actions
Set structured financial goals (emergency fund, vehicle, housing)
Open an FHSA or TFSA for tax-advantaged savings
Explore financing options as score crosses 700+
Build a 3–6 month emergency reserve
Review insurance, beneficiaries, and basic estate planning
Consider professional financial planning for long-term wealth building