Know Your Options when Making a Consumer Proposal or a Bankruptcy
When looking to resolve debt and get your finances back on track, it’s important to understand your options. It’s crucial to have an advocate looking out first and foremost for your interests, not those of your creditors, in order to get the best possible result when making a consumer proposal or a bankruptcy.
There are often major differences between a proposal made to your creditors by an advocate on your behalf, and a proposal made to your creditors by someone who is representing your creditors. Struggling with debt is not uncommon, and 4 Pillars Muskoka debt consultants can help.
Role of a Licensed Insolvency Trustee (LIT)
One of the duties of a licensed insolvency trustee is to inform the creditors that they have investigated your affairs in order to make sure a proposal or bankruptcy is reasonable and fair and to also ensure the creditors that you will be able to pay it. Only an LIT can administer a proposal or a bankruptcy, however it is important to understand that a LIT represents your creditors and is an officer of the court. A trustee can provide you with information and advice about proposal and bankruptcy processes and ensure that your rights as well as the rights of the creditors are respected; his/her duty, however, it is not their role to get the best best financial outcome for you.
Role of a 4 Pillars Debt Consultant
At 4 Pillars Muskoka, we believe that every person is entitled to professional representation when preparing for a consumer proposal or bankruptcy. In fact, we wholeheartedly believe it is essential that a qualified professional represent the client/debtor. Canada’s insolvency system is not set up this way, however. People are not made aware of who represents who, how parties get paid, etc. Nor is there adequate information provided to the debtor when looking to make an informed decision on these matters; and let’s face it, solving financial difficulties is a major decision.
While only a trustee can file a proposal or bankruptcy, you always have the option to acquire an advocate whose goal is to protect your interests and ensure the best possible outcome for your financial future. A 4 Pillars debt consultant represents you and only you, with no conflict of interest.
Main differences between a Licensed Insolvency Trustee and a 4 Pillars Debt Relief Specialist are:
| 4 Pillars Debt Relief Specialist | Licensed Insolvency Trustee | |
| Free first consultation | YES | YES |
| Solely represents the interest of the debtor | YES | NO |
| Acts as an advocate for a consumer struggling with debt | YES | NO |
| Represents the debtor to get the best possible result from a consumer proposal | YES | NO |
| Provides a comprehensive credit rebuilding program to rebuild credit within 24 months | YES | NO |
| Utilizes various LIT’s to achieve the best result for the consumer | YES | NO |
| Has access to products that can remove a consumer proposal from your credit rating 5 years sooner than any company in the debt industry | YES | NO |
| Role in the industry is to provide financial education and rehabilitation to consumers | YES | NO |
| Is on officer of the court | NO | YES |
| Has a fiduciary duty to your creditors | NO | YES |
| Receives a greater fee the more the debtor pays to the creditors | NO | YES |
A 4 Pillars debt consultant will work with you to:
- Reduce your debt by up to 80 percent
- Work to make sure you retain your assets
- Develop a comprehensive credit rebuilding plan
- See you completely debt-free within 5 years
While debt is stressful and scary, there are options to help you become debt free and rebuild your credit. At 4 Pillars Muskoka, we provide the support and guidance you need to get your finances back on track, stay out of debt, and reach your future financial goals. We look forward to working with you.
Ryan Brown
MUSKOKA / PARRY SOUND
1 Crescent Road
Huntsville, ON P1H 1Z6
P: 705-640-0187
Fax: 1-888-771-3112
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