Yes. In fact, the process to settle debts through a consumer proposal is a right outlined and protected by the Bankruptcy and Insolvency Act. The Act provides a system whereby Canadians who cannot afford to repay everything they owe can settle their debt through a consumer proposal with the help of a Licensed Insolvency Trustee.
Outside of that outlined path, debt settlement is still a legal means to deal with debt. You can settle debts on your own or work with a debt settlement company. However, this process for debt settlement is not protected under federal law.