Many people I meet ask the question: “why not just visit a Trustee in Bankruptcy or a Credit Counsellor by myself?”
At 4 Pillars, we take the view that when in the debt advisory business you either act for the creditor, or act for the debtor. It’s impossible to give good sound advice to both – you simply cannot do it.
If you find yourself considering bankruptcy, consumer proposal or just unable to pay your bills – then you need independent advice. The first question I would recommend asking the expert you seek help from is – do you work for the creditors or represent the creditors in anyway? If the answer is yes, it’s probably prudent that you take your business elsewhere.
It really is time for consumers to take back control of the outcome of any financial restructuring programs they enter to ensure the terms agreed and negotiated are on their terms not the creditors. You have the right to ask questions and challenge what you are being told. What is good for the creditors and the companies representing them is not always good for you.
So here are some facts about the debt industry:
1. ‘The trustee is an officer of the court who acts on behalf of the creditors in a fiduciary capacity’.
This fiduciary responsibility is very powerful. A fiduciary is a legal or ethical relationship of trust between two or more parties. In other words, the Bankruptcy Trustee works for your creditors, not for you.
2. The trustee holds the duty of care for the creditors. If you approach the trustee directly to file a consumer proposal, they will determine the terms to which the proposal will be filed.
3. The other piece to remember is there are over 800 trustees in Canada and they all have different ways of interpreting the Bankruptcy and Insolvency Act, which can have a significant impact on any restructuring plan you enter.
4. It is estimated that 35% of all Consumer Proposals in Canada fail.
5. Non-profit Credit Counsellors are usually financed by creditors. The debtor pays the credit counselling society and they in turn pay the creditors. The fees paid by the debtor are usually minimal but rarely do they offer less than 100% of debt owed. They however usually reduce or eliminate the interest rates on future payments.
6. Non-profit Credit Counsellors or For-profit Credit Counsellors do not allow you to pay the debt back on the original terms and conditions. All your creditors included in the plan are reported as R7’s on your credit rating for the length of time it takes you to pay off the debt (usually 5 years) plus an additional 3 years (8 years in total).
7. Over 97% of clients that complete a Consumer Proposal that is structured by a 4 Pillars office are successful. The Credit Counsellors role is to collect 100% of the debt that is owed and will simply negotiate better payment terms for debtors. They do not reduce the amount that is owed.
So what does 4 Pillars do that is different?
The role of 4 Pillars is to represent the interest of the debtor, not the creditor. That is our sole mandate and everything we do is governed by this. We educate consumers about all the options available so they can make informed decisions about the best plan to deal with their debt. We represent the debtors when structuring a consumer proposal to ensure the terms are agreed based on the long term financial goals of our clients – “the debtors”.
We have a network of more than 100 trustees we use, depending on the individual needs of the debtor. Think of it like the role of a mortgage broker, with access to hundreds of mortgage lenders to obtain the best rate and terms for you, versus your bank that has access to only the bank’s mortgage products.
4 Pillars has one of the most comprehensive credit rebuilding plans in Canada. The goal is to get your credit score to 650 as quickly as possible. A credit score of 650 is the magic number that traditional banks see as a sign of a rehabilitated customer. With the 4 Pillars plan, you can get there in as little as 18 months. With our years of experience 4 Pillars is the best debt option for Brampton and Etobicoke debtors.
Contact us today for an evaluation of your debt situation and we’ll show you how to get your financial life back in good working order!
Sincerely,
Frank Eichinger
4 Pillars Brampton and Etobicoke
Direct Line: 647-403-4992
