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Consolidating Debt Through a Consumer Proposal or Bankruptcy in Burnaby

Recognizing that you Should File for Bankruptcy

Debt Relief Options in BurnabyEach person’s financial situation is unique. However, if you are in a situation where you cannot repay your debts as they become due, you may be thinking of whether or not you should file for bankruptcy.

This decision is an individual one that will be different for each person. If you are faced with financial trouble and do not think that you will be able to repay your debts, then you may wish to speak with a licensed trustee in bankruptcy. Don’t worry, just speaking with a trustee won’t automatically mean that you will have to file for bankruptcy. A trustee is licensed and trained and is able to review your financial situation and provide you with details on the debt relief options that are available to you.

Once you have completed this initial consultation (which is usually offered at no charge) the choice for how you wish to proceed is entirely up to you. You will never feel pressured by a trustee to choose one option over another.

What is Bankruptcy?

Bankruptcy is a legal process that allows you to eliminate the majority of your unsecured debts. Unsecured debts are debts such as credit card debt, unsecured lines of credit, personal loans, bank overdrafts, tax debt and other such debt. Student loan debt can only be included if you have been out of school for at least seven years.

In the case of secured debt, such as a house or car, you are able to keep these assets as long as you continue to make payments on these debts. However, you will also have to make additional payments to your trustee to compensate your creditors for your equity in these assets.
If you aren’t able to make the payments on your secured debts, these assets must be returned to the lender. If this happens, any shortfall incurred by the lender when selling the asset will be included as an unsecured debt.

It’s also important to note that alimony, child support and court-ordered debt cannot be included in a bankruptcy.
If you decide to file for bankruptcy, this must be done with a licensed bankruptcy trustee.


Why File for Bankruptcy?

The decision to file for bankruptcy is typically a last resort, after other debt relief and debt management options have failed. The goal of bankruptcy is to give you a fresh start and allow you to return to a position where rebuilding your financial life is possible.

When a person decides to file for bankruptcy, he or she is stating that they are unable to pay their debts as they become due. Bankruptcy provides you with specific legal protection. Your unsecured creditors are not able to contact you directly once you have filed for bankruptcy. Instead, all communication must be done through your trustee.

Any civil legal action against you to collect on your unsecured debts will stop and no additional legal action may start. Filing for bankruptcy also means that creditors are not able to send collection agencies after you, so you will not have to deal with these often harassing calls any longer.

What to Know About Bankruptcy

When you file for bankruptcy, you do not lose all of your assets, contrary to popular belief. However, if you have a lot of assets, you may lose some. Each province maintains a list of which assets you are able to keep when you file for bankruptcy. In general, these items are assets that are considered necessary to live a basic lifestyle. Your trustee will make sure that you are able to keep these exempt assets.

While you are bankrupt, you will need to provide your trustee with monthly income updates. If you make more than specific levels that are set by the federal government, you will have to make what are called “surplus income payments.” Your trustee will let you know if this is required.
When you file for bankruptcy, a note is placed on your credit report. This note remains for six years after you have been discharged from bankruptcy, if it is your first time filing for bankruptcy. The length of your bankruptcy will depend on your situation. You could be discharged from bankruptcy in as little as nine months.

Book your free 1 hour consultation with a licensed insolvency trustee in Burnaby now.


As mentioned, bankruptcy is not the only option for those who are having difficult repaying debt. When you meet with your trustee, he or she will give you details on all of the options that are available to you. It is then entirely your decision as to how you wish to proceed.
If you decide that the right choice is to file for bankruptcy, your trustee will ensure that the appropriate paperwork is filed and submitted.


Address: 4710 Kingsway #1418, Burnaby, BC V5H 4N2
Phone1 (778) 400-3328