UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~July~~September 38, 2006

(Date of earliest event reported)

HOUSE OF BRUSSELS CHOCOLATES INC.

(Exact name of registrant as specified in its charter)

NEVADA		000-29213		52-2202416
(State or other Jurisdiction of incorporation		(Commission File Number)		(IRS Employer Identification No.)

1658 FOSTERS WAY, DELTA, BC, CANADA, V3M 6S6

(Address of principal executive offices)

(604) 636-1056

Registrant's telephone number, including area code

ITEM 2.04 TRIGGERING EVENTS THAT ACCELERATE OR INCREASE A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT

On ~~July 1~~September 8, 2006, Brussels Chocolates Limited (“Brussels Chocolates”), a wholly owned subsidiary of House of Brussels Chocolates Inc. (the “Company”), ~~failed to pay~~received ~~$151,000~~demand infor ~~principal~~accelerated ~~and~~payment ~~interest~~of ~~due~~$5,040,736 on its indebtedness with Laurus ~~Master~~ Master Funds (“Laurus”). ~~Under~~entered ~~the~~into ~~terms~~on ofMarch ~~the indebtedness~~29, ~~this~~2005. ~~failure~~In toaccordance ~~pay creates~~with ~~an event of default beginning the sixth day after such payment was~~this ~~due. In addition~~demand, inour ~~accordance~~indebtedness ~~with~~has ~~our~~been ~~agreements~~increased ~~with Laurus~~by; a1) ~~any breach~~a ofdefault ~~covenant~~payment ~~remaining~~of ~~uncured for fifteen (~~15~~) days, or; b) judgment~~% ~~rendered against us in excess~~ of currently ~~$100,000~~outstanding ~~which is not vacated~~principal, ~~discharged, stayed~~interest orand ~~bonded~~fees ~~within~~and; ~~thirty (30~~2) ~~days~~liquidation ~~from the entry thereof, shall also~~fees ~~constitute an event~~ of ~~default. On~~ ~~June 9,~~5% ~~2006, we were notified that findings~~ of ~~fact~~amounts ~~were~~to ~~issued~~be incollected ~~the~~a ~~case~~during ~~of Stephen Whittington,~~a etplanned ~~al.~~liquidation vperiod. ~~House of Brussels Chocolates, Inc., et~~Default ~~al., that found~~payments ~~the~~and ~~Company~~liquidation ~~was~~fees ~~liable~~totalled onapproximately ~~a breach of contract claim in the amount of~~ $2852,~~702,~~000. ~~On July 3,~~at ~~2006, we filed~~September ~~a notice of appeal in this matter. We have also failed to pay certain Canadian taxes when due~~7, ~~and are in non-compliance with the Formula Amount governing~~ ~~our Secured Revolving Note with Laurus~~2006.

AsThe ofdemand ~~the date~~from ofLaurus ~~this~~requires ~~filing,~~payment noin ~~notice~~full ofby ~~acceleration~~September ~~relating~~15, to2006 ~~our~~or ~~indebtedness~~Laurus ~~with~~will ~~Laurus~~commence ~~has~~legal ~~been~~proceedings ~~received.~~to Weseize ~~are~~the ~~actively~~assets ~~working~~of ~~with~~Brussels ~~Laurus~~Chocolates ~~to avoid~~and ~~acceleration.~~recover Inamounts ~~the~~due ~~event~~under weits ~~are~~Guarantee ~~unsuccessful,~~with ~~however,~~ the ~~balance~~Company. ~~due~~Though similar ondemand for payment has not been presented directly to the Company or other of its ~~indebtedness~~wholly ofowned $4subsidiaries,~~975,000~~ ~~could~~it ~~become~~is ~~immediately~~possible ~~due~~that ~~and~~such ~~payable.~~demand will be forthcoming.

ITEM 8 2.~~01 OTHER INFORMATION~~06 MATERIAL IMPAIRMENTS

InOn ~~the matter~~September ~~of Stephen Whittington~~11, et2006 ~~al.~~the v.Company ~~House~~concluded ofthat ~~Brussels~~its ~~Chocolates,~~investment ~~Inc.,~~in etthe ~~al.,~~goodwill ~~the~~ and ~~Company~~intangible ~~has~~property ~~been~~of ~~unsuccessful~~its inwholly ~~negotiating~~owned asubsidiary, ~~settlement.~~DeBas AsChocolate ~~a result, we~~Inc. ~~have filed~~(‘DeBas”), ahad ~~notice~~become ofwholly ~~appeal~~impaired. ~~with~~This ~~the~~determination ~~Eighth~~resulted ~~Judicial~~from ~~District~~an analysis ~~Court~~ of ~~Clark County,~~the ~~Nevada,~~impact ~~appealing~~of ~~the~~its ~~verdict~~sale toof ~~the~~certain ~~Nevada~~assets ~~Supreme~~belonging ~~Court.~~to InDeBas ~~connection~~together with ~~this~~the ~~appeal,~~effect weof ~~will~~the ~~continue~~demand ~~settlement~~for ~~discussions~~payment ~~and~~made ~~vigorously~~by Laurus on September 8, ~~pursue~~2006. ~~relief~~In ~~from~~total, the ~~judgment~~Company recognized an expense in the ~~Nevada~~amount ~~Supreme~~of ~~Court~~$1,400,000 in connection with this impairment.

InITEM ~~connection with these events, we are currently investigating strategic alternatives which may include the sale of certain assets~~5. ~~In the event such~~02 DEPARTURE ~~a sale~~OF isDIRECTORS ~~undertaken,~~OR wePRINCIPAL ~~may~~OFFICERS; ~~incur~~ELECTION aOF ~~write~~DIRECTORS; ~~down~~APPOINTMENT ~~in the value of goodwill related~~OF toPRINCIPAL ~~our domestic subsidiary located in Fresno, California.~~OFFICERS

Effective September 8, 2006, the Company terminated the employment of Luigi DiCicco, its Controller and Principal Financial Officer.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HOUSE OF BRUSSELS CHOCOLATES INC.
Date: July 6, 2006
Date: September 12, 2006
	By: /s/ Grant Petersen
	Grant Petersen
	Chief Executive Officer and President

Filing Compare · HOUSE OF BRUSSELS CHOCOLATES INC