Debt help in British Columbia: consumer proposals, bankruptcy and the rules that differ here

A consumer proposal or bankruptcy in British Columbia runs under the same federal law as anywhere else in Canada. What changes at the BC border is the provincial layer: which belongings you keep, how much of your paycheque a creditor can take, how long a creditor has to sue, and how collection agencies must treat you. This guide covers those BC rules, with dollar figures taken from the provincial statutes as consolidated on BC Laws to Oct. 6, 2026.

More British Columbians are using these options. In the 12 months to Aug. 31, 2026, the province recorded 16,470 consumer insolvencies, up 13.8% from the year before, more than double the national rate of increase.¹

How many British Columbians file for insolvency?

Here is how BC compared with Canada as a whole over the latest 12-month period in the Office of the Superintendent of Bankruptcy (OSB) data.

Source: Office of the Superintendent of Bankruptcy, August 2026 release; BC share calculated by The Paydown.¹

BC accounted for roughly one in nine consumer filings in the country, and proposals make up a bigger share of filings here than nationally. For the national picture, see our August insolvency numbers story.

Consumer proposals and bankruptcy: the federal basics

Both options are set out in the Bankruptcy and Insolvency Act (BIA) and both are administered by a Licensed Insolvency Trustee (LIT).

• Consumer proposal. You offer your unsecured creditors a partial repayment, more time, or both, over a term of no more than five years. It is open to people whose debts, not counting the mortgage on their home, are $250,000 or less.²³ You generally keep your assets.
• Bankruptcy. The trustee sells assets that the law does not protect. A first bankruptcy without surplus income payments usually ends in nine months, or 21 months if your income is high enough that you must make those payments.⁴

Filing either one triggers a stay of proceedings, a legal pause that stops most creditor lawsuits and wage garnishments. Our national guides explain each option step by step: how a consumer proposal works in Canada and what happens in a Canadian bankruptcy.

What can you keep if you go bankrupt in BC?

The BIA says property protected from seizure by the law of your province stays out of the bankruptcy.² In BC, that protection comes from the Court Order Enforcement Act and the dollar limits in its Exemption Regulation. As of the consolidation current to Oct. 6, 2026 (last amended in 2019), the limits are:⁵⁶

A few points matter in practice:

• Value means resale value, the amount the item would likely fetch at a sheriff’s sale, not what you paid for it.⁵
• If an item is worth more than its limit, it can be sold. Any secured lender with a registered interest is paid first, and you then receive cash up to the exemption amount.⁵
• The home exemption measures equity, meaning the home’s value minus what is owed on it. At $9,000 to $12,000, it protects only a modest amount, which is one reason BC homeowners often look at a proposal before a bankruptcy.
• The exemptions don’t cover a debt you took on to buy the item itself, and business stock-in-trade is not protected.⁵

To see how these limits stack up against other provinces, Harris & Partners keeps a province-by-province table of bankruptcy exemptions.

Are RRSPs protected in BC?

Mostly, yes, and from two directions.

In bankruptcy, federal law protects money in an RRSP, RRIF or RDSP, except for contributions made in the 12 months before the bankruptcy date.² That rule applies across Canada.

Outside bankruptcy, BC adds its own shield. Section 71.3 of the Court Order Enforcement Act protects property in an RRSP, RRIF or deferred profit sharing plan from garnishment, seizure and other collection processes. That protection does not cover money contributed after, or within 12 months before, the debt being collected came due, or money already being paid out of the plan.⁵

How much of your pay can be garnished in BC?

A creditor generally needs a court judgment before it can garnish your wages in BC; the Act bars garnishing an employee’s wages before judgment.⁵ Once a creditor has one, the basic rules are:

• 70% of your wages are exempt from an ordinary garnishing order, so at most 30% can be taken.
• A minimum is protected: at least $100 a month if you have no dependants, or $200 a month if you do, prorated for shorter pay periods. Those floors can be lost if the debt is for room and board.
• Support orders follow different rules. For child or spousal support, the protected share drops to 50% of wages up to $600 a month and one-third of wages above that, with a $100 monthly floor.
• Either side can ask to change it. A creditor or the person being garnished can apply to a registrar or judge to raise or lower the exempt amount. The order can’t push the exemption above 90% of wages or below the monthly floors.⁵

Filing a consumer proposal or bankruptcy stops ordinary wage garnishments.³⁴ If a job loss is behind the trouble, our story on what September’s job losses mean for household debt covers the first steps.

How long can a creditor sue you in BC?

Under BC’s Limitation Act, a creditor generally has two years from the day a claim is discovered to start a court case.⁷ When a claim counts as discovered depends on the facts, so the exact start date can be hard to pin down. There is also an outer limit: no claim can start more than 15 years after the act or omission it is based on.

Two details catch people out:

• Acknowledging the debt can restart the clock. A part payment on a fixed amount counts as acknowledging it, and so does a written, signed acknowledgment. Either one can reset the two-year period from that date.⁷
• A judgment lasts much longer. Once a creditor has a BC court judgment, it generally has 10 years to enforce it.⁷

An expired limitation period stops a lawsuit; it does not erase the debt. Consumer Protection BC warns that collectors may keep contacting you even once a creditor can no longer sue, and reminds readers that “your debt has not gone away just because they are no longer calling you.”⁸

What are the debt collection rules in BC?

Collection agencies in BC are licensed and supervised by Consumer Protection BC under Part 7 of the Business Practices and Consumer Protection Act.⁹⁸ Among the rules:

• Written notice first. A collector must send written details of the debt (who the original and current creditors are, the amount, and its own authority) and generally wait five days before phoning you.
• Calling hours. Calls and visits are limited to 7 a.m. to 9 p.m., and 1 p.m. to 5 p.m. on Sundays, with no contact on statutory holidays, unless you ask for it.
• No harassment. Threatening, profane or intimidating language and undue pressure are prohibited, as is publishing or threatening to publish that you haven’t paid.
• Limits on third parties. Collectors may contact your family, friends or neighbours only to get your contact details, and your employer only to confirm your job, unless you agree otherwise.
• Your right to push back. You can tell a collector in writing to contact you only in writing or only through your lawyer, or tell the collector and the creditor that you dispute the debt and want it decided in court.⁹

BC also regulates debt repayment agents, companies that negotiate with your creditors for a fee. They must be licensed, cannot collect any fee until you and at least one creditor have accepted a repayment proposal in writing, and their fees are capped by regulation.⁹¹⁰ A debt repayment agent cannot file a consumer proposal or bankruptcy for you; only a Licensed Insolvency Trustee can.

On credit reports, BC law bars credit bureaus from reporting a bankruptcy more than six years after discharge, unless the person has been bankrupt more than once.¹¹

Is there an Orderly Payment of Debts program in BC?

Not at present. Orderly Payment of Debts (OPD) is a court-supervised consolidation program under Part X of the federal BIA, which applies in a province only when the province asks for it.² According to People’s Law School, BC’s program was run by the provincial Debtors Assistance Branch until the government closed the branch in 2002. Since then, the province has not offered OPD consolidations, although Part X technically remains in force here.¹²

People in BC who want a repayment plan without a formal insolvency filing usually look at a debt management plan through a credit counselling agency. Those plans depend on each creditor agreeing, and they don’t come with the legal stay of proceedings that a filed consumer proposal does.

Finding a Licensed Insolvency Trustee in BC

Only a Licensed Insolvency Trustee can file a consumer proposal or bankruptcy. LITs are licensed and supervised by the OSB, their fees for consumer files are set by federal rules, and the OSB notes that most do not charge for a first consultation.¹³ You can check any trustee’s licence in the OSB’s Licensed Insolvency Trustee registry.

If you would like to read more about local options before booking a meeting, Harris & Partners has a page on debt relief and consumer proposals in British Columbia.

Frequently asked questions

Can I keep my house if I go bankrupt in BC?

Only if your equity is within the provincial limit: $12,000 in the Capital Regional District or Metro Vancouver, and $9,000 elsewhere in BC, as of Oct. 6, 2026.⁶ Equity above that limit is not protected, which is why a consumer proposal, where you generally keep your assets, is often the option discussed first for homeowners.

Does a consumer proposal stop a wage garnishment in BC?

Yes. Once a proposal is filed, ordinary wage garnishments and most lawsuits by unsecured creditors are stopped.³

What is the limitation period for debt in BC?

Generally two years from when the claim is discovered, under the Limitation Act, with a 15-year outer limit. A part payment or a signed written acknowledgment can restart the clock.⁷

Is my RRSP safe from creditors in BC?

Largely. BC law protects RRSPs and RRIFs from most collection outside bankruptcy, and federal law protects them in a bankruptcy. In both cases, recent contributions can be exposed.⁵²

Can a collection agency call my employer in BC?

Only to confirm where you work and your job title, after giving you the required notice, or for other purposes you agree to in writing.⁹