4 Pillars sometimes gets lumped together with debt consultants and debt settlement firms. There are also the unethical debt consultants you read about in the news, the ones that charge you upfront fees and make promises they can’t keep.
The debt industry unfortunately has its share of predatory debt consolidation companies looking to take advantage of consumer when they are vulnerable.
Is 4 Pillars a trustworthy organization? Is the service we offer a scam?
Let’s review some common questions we receive and you can come to your own conclusion.
You can also read 60+ reviews from Canadians here.
How do you actually reduce my debt? The promise of “80% reduction” seems too good to be true.
Creditors don’t want you to declare bankruptcy. Our experts calculate our client’s value in a hypothetical bankruptcy and then offering the creditors more than they would get in a bankruptcy but usually considerably less than the original debt.
The creditors then make a business decision on either accepting the proposal, providing a counter offer or rejecting the proposal.
As the proposal is higher than a bankruptcy value the creditors rarely reject a fair proposal.
4 Pillars carefully tracks all proposals we submit across Canada, and the acceptance rates of all creditors so when we structure a proposal we are extremely confident it will be accepted by the creditors based on 10,000’s of files we have previously had accepted.
You often recommend consumer proposals. Doesn’t this ruin your credit rating?
A consumer proposal provides legal protection from your creditors and is one of the most successful ways to significantly reduce your debt and consolidate your debt into one low monthly payment. Despite what you may read, every debt restructuring plan will have an impact on your credit rating. The key is to first make sure you structure the proposal on your terms giving you the best opportunity to pay it off in the shortest period possible and then put a comprehensive plan in place to reduce the impact on your credit rating.
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. 650 is the magic number the traditional banks see as a sign of a customer who is rehabilitated. With the 4 Pillars plan, you can get there in as little as 18 months.
4 Pillars also holds proprietary products that can reduce the impact on your credit rating of a debt restructuring plan by up to 5 years.
Let’s be honest. What’s in it for 4 Pillars? How do you make your money? Will I pay upfront fees?
We are a for-profit company and we charge a fee for our services that is paid for by you (our client). When you deal with 4 Pillars, you are dealing with the business owner of the area they service, and their success is based on providing exceptional service, achieving results and obtaining referrals from previously satisfied customers.
With many other firms you are dealing with salaried employees that are paid by the hour with little vested interest in the success of your plan.
The money you save from paying back less of your debt will greatly outweigh our fees.
Is this refinancing? Am I selling you my debt?
No, this is debt restructuring. We are educating you on your debt options All payments made will ultimately go back to your original creditors. We do not buy the debt.
You can get free advice from non – profit credit counseling agencies. I hear they are regulated. Why go with a private company like 4 Pillars?
The non-profit Credit Counselors are actually financed by creditors. The debtor pays the credit counseling society and they pay creditors. The fees paid by the debtor are usually minimal but rarely do they offer less than 100% of debt repayment. They can usually reduce the interest rates on future payments.
Even though you are paying back 100% of the debt because you are not paying it on the original terms and conditions, this will reflect as R7 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).
- As credit counselors are funded by the banks and credit card companies and you are repaying 100% of the debt, it seems obvious who they are truly working for.
- 40% of credit counseling programs end up filing bankruptcy as the monthly payment is still unmanageable.
- 97% of people entering into a debt restructuring program structured by 4 Pillars successfully complete the plan.
I’ve heard debt consolidation companies tell you to stop paying your bills as they can’t stop with creditors from collecting if payments are being made. Is this true? Doesn’t this destroy your credit?
Despite what you might hear, anytime you enter a debt restructuring plan and aren’t paying the creditor back on the original terms and conditions, there is an impact on your credit rating.
Depending on the type of restructuring you are going through, the creditors may be as willing to accept the proposal if you are current or delinquent on the payments. Once debt becomes unmanageable it needs to be dealt with and the sooner you do it, the easier it will be to rebuild for the future. So even if you are current on all payments, debt restructuring is a viable option.
Before you stop paying the creditors it is important to fully understand the plan and understand how long it will take to agree to the new payment arrangement with the creditors, and what protection you have from the creditors in the meantime.
If you simply stop paying your creditors this can put you at risk from legal action and this needs to be fully explained to you with any debt restructuring plan you are considering.
What if the proposal is rejected? I’ve heard that debt consultants tell you to stop paying your creditors. As a result, your credit rating gets ruined and then generally your proposal is rejected. In the end, you are deeper in debt, out thousands of dollars in fees, and stuck with ruined credit.
Entering into a debt restructuring plan will have an impact on your credit rating so it is imperative you understand this and have a comprehensive plan in place to rebuild for the future.
The proposals 4 Pillars structure are very rarely declined by the creditors as the proposals offer a greater return to the creditors than a bankruptcy and are always based on full disclosure of our client’s situation. So the creditors understand the offer is fair based on that.
I’ve heard that bankruptcy trustees perform services like filing a consumer proposal. They’re regulated by the Office of the Superintendent of Bankruptcy Canada. So why go with 4 Pillars?
The Bankruptcy Trustee plays a critical role in debt restructuring and any formal restructuring plan filed under the Bankruptcy and Insolvency Act requires a trustee. It’s important to understand the responsibilities the trustees hold and the responsibilities assigned to them by the Office of Superintendent of Bankruptcy.
The role of the trustee:
‘The trustee is an officer of the court who acts on behalf of the creditors in a fiduciary capacity’
The 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.
The other piece to remember is there are over 800 trustees in Canada and they all have different ways to interpret the Bankruptcy and Insolvency Act, which can have a significant impact on any restructuring plan you enter.
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 the consumer about all the options available including options that exist outside the Bankruptcy and Insolvency Act and do not require a trustee.
This way you can make an informed decision about the best plan to deal with your debt. For our clients we represent you when structuring a consumer proposal to ensure the terms are agreed based on your long-term financial goals.
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.
It is also important to understand that filing and administering the consumer proposal should be only one small piece of the debt restructuring plan and the rehabilitation services to minimize the long-term impact on your credit rating is equally as important.
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. 650 is the magic number the traditional banks see as a sign of a customer who is rehabilitated. With the 4 Pillars plan, you can get there in as little as 18 months.
4 Pillars also holds proprietary products that can reduce the impact on your credit rating of a debt restructuring plan by up to 5 years.
I’ve heard that I just pay you a lump sum every month instead of to my creditors. Why not just pay creditors directly instead of using a service like 4 Pillars?
The key in a debt restructuring plan is not who pays who, the critical piece is the terms of the consumer proposal and the plan to rebuild your credit.
4 Pillars builds you a plan that uses all options available to reduce the debt by the maximum amount and create an affordable payment plan that allows you to meet your long-term financial goals in as short a period as possible.
4 Pillars does not collect funds designated for the creditors as our role is solely representing the interests of the debtors, and this does not raise conflict with whom we are working for.
What do you know that I don’t know? Why do I need to hire 4 Pillars? It seems like I could just do this by myself.
We offer more than 12 years of experience solely focused on representing the interests of debtors with products and services that allow us to create what we believe to be the most comprehensive and successful debt restructuring plans in Canada. This is not information you can learn from the Internet.
The industry is very complex, with lots of different options and the majority of the experts in the industry represent the interests of the creditors so it is imperative you have an expert on your side representing you.
What’s the difference between 4 Pillars and a bankruptcy trustee?
The Bankruptcy Trustee plays a critical role in debt restructuring and any formal restructuring plan filed under the Bankruptcy and Insolvency Act requires a trustee. It’s important to understand the responsibilities the trustees hold and the responsibilities assigned to them by the Office of Superintendent of Bankruptcy.
As mentioned earlier, the trustee is ‘an officer of the court who acts on behalf of the creditors in a fiduciary capacity’.
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.
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 the consumer about all the options available including options that exist outside the Bankruptcy and Insolvency Act and do not require a Bankruptcy Trustee.
This way you can make an informed decision about the best plan to deal with your debt. For our clients we represent you when structuring a consumer proposal to ensure the terms are agreed based on your long term financial goals.
4 Pillars has 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.
It is also important to understand that filing and administering the a consumer proposal should be only one small piece of the debt restructuring plan and the rehabilitation services to minimize the long term impact on your credit rating is equally as important.
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. 650 is the magic number the traditional banks see as a sign of a customer who is rehabilitated. With the 4 Pillars plan, you can get there in as little as 18 months.
4 Pillars also holds proprietary products that can reduce the impact on your credit rating of a debt restructuring plan by up to 5 years.
What�s the difference between 4 Pillars and a credit counselor?
The non-profit Credit Counselors are actually financed by creditors. The debtor pays the credit counseling society and they pay creditors. The fees paid by the debtor are usually minimal but rarely do they offer less than 100% of debt repayment. They can usually reduce the interest rates on future payments.
Even though you are paying back 100% of the debt because you are not paying it on the original terms and conditions, this will reflect as R7 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).
It is also important to understand that filing and administering the a consumer proposal should be only one small piece of the debt restructuring plan and the rehabilitation services to minimize the long-term impact on your credit rating is equally as important.
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. 650 is the magic number the traditional banks see as a sign of a customer who is rehabilitated. With the 4 Pillars plan, you can get there in as little as 18 months.
4 Pillars also holds proprietary products that can reduce the impact on your credit rating of a debt restructuring plan by up to 5 years.
Why should I trust 4 Pillars?
The name ‘4 Pillars’ encapsulates our philosophy. The Pillars, a symbol of strength and stability, personifies our commitment to clients.
We are completely Canadian owned and operated and one of the oldest and largest debt restructuring companies in Canada and have been in business since 2002.
Our 50+ offices across Canada offer highly trained professional Debt Restructuring Consultants and experts in debt, credit, budgeting and Financial Literacy.
All our offices provide face-to-face consultations and you are always dealing with a person not a call centre and you have professional who is completely committed to represent your interests throughout the process.
