Fresh Start BC - Doug Lee & Associates Licensed Insolvency Trustee
Located at: #104 - 732 Cormorant Street, Victoria, BC, V8W 4A5
Phone: 250-360-4003 or 866-495-3328 (DEBT) Fax: 250-360-4008

Fresh Start BC - What Are Your Options For Bankruptcy

Possible solutions

There are several options available, depending on your situation.

Contact your creditors.

Contact your creditors and explain why you cannot make your payments. You can negotiate a settlement or new payment terms with your creditors.

This option may be ideal when there are a small number of creditors. However, if you have many creditors, it may be difficult to get all of them to agree to payment terms favourable to you.

Credit counselling.

In many cases, people get into financial difficulty simply through poor money management and are able to repay their creditors with some sound advice. In these cases, a credit counselor can work with you in developing a financial plan to control your finances.

Debt consolidation loan.

You may ask your bank or a financial institution for a debt consolidation loan to pay off your creditors. Ensure that you shop around for the best interest rate possible.

They may require that you pledge some of your assets as collateral or that you obtain a co-signer for the loan.

Consumer proposal.

If it appears that you cannot repay all of your creditors, a proposal might be the solution. A proposal is a legal process in which we work with you to make a repayment plan to your creditors. We help determine what type of plan you can afford to pay and what terms will be acceptable to your creditors.

A successful proposal will allow you to prevent bankruptcy and minimize the effect on your credit rating. When you file a proposal, your creditors will be stopped from taking most legal steps to recover their debts from you; for example, imposing wage garnishees. We will contact your creditors directly.


If none of the above methods solves your debt problem, you may choose to consider bankruptcy.

Bankruptcy should be a last alternative if you cannot meet your financial responsibilities through affordable payments over a specific period of time. Bankruptcy is a legal process performed under the Bankruptcy and Insolvency Act, by which you may be relieved of most, or all, of your debts.

Because of your inability to pay your debts, you assign all of your assets, except those exempt by law, to a licensed trustee in bankruptcy.

When you declare bankruptcy, your creditors will be stopped from taking most legal steps to recover their debts from you.

We will contact your creditors directly.