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What is Debt Restructuring in Ontario?

By Robert Glen


Your credit-card debt has piled up, the cards are maxed out, perhaps you’ve borrowed money to pay off bills, maybe you’ve gone to the limit on a line of credit and your household debt is completely out of control.

You’ve decided it’s time to stop the spiral of debt consuming most of your waking hours and robbing you of much of the sleep you need.

You’re tired of receiving payment-demand letters and phone calls from debt collectors.


It’s time you decided to talk to 4 Pillars Windsor about debt restructuring, an easy solution to the complex problem of household debt or small business debt.

Your 4 Pillars Windsor debt consultants will help you solve the debt crisis that is plaguing your everyday life. Through debt restructuring – a way to reduce the amount you owe your creditors, rebuild your credit, and save you plenty of money – you’ll be able to recapture fiscal sanity in your life.

Debt restructuring will allow you to look at the options that best suit your individual situation.


If you choose to file a consumer proposal, you may be able to reduce the amount you owe your creditors by a significant amount. If your creditors vote to accept your proposal – and it only takes those creditors who hold at least 51 per cent of your debt or more to say yes to accept your proposal – you have restructured your debt in your favour with life-changing results. And a consumer proposal also offers you legal protection from your creditors.

Some 4 Pillars clients who have filed consumer proposals through licensed Trustees in bankruptcy have paid as little as 20 per cent or even less of the amount they owe their creditors, with no interest. You can also pay off your creditors early without paying a penalty fee. If you earn extra income while paying off your proposal you do not have to pay more to your creditors.

Most wage garnishments end immediately and bill collectors and collection agencies stop calling once you begin your proposal.

Payments are made on a monthly basis and can be arranged over a number of years to make it easy and convenient for you to get back on your feet financially. And you can also begin to rebuild your credit once your proposal has been filed.

It doesn’t make sense to keep paying massive high-interest credit-card bills that you may never pay off or to keep borrowing money to pay off high-interest debt when there is a better way.


If your debt is completely overwhelming and has become something you simply cannot manage, bankruptcy, usually seen as a last resort, may be the most appropriate step to take.

Your 4 Pillars Windsor debt consultant will work with you to help you fully understand the process and the implications, help you rebuild financially and has budgeting and credit rebuilding services available to help you as well.

What is involved in bankruptcy?

Bankruptcy is filed with a bankruptcy trustee, You must fill out monthly income and expense reports while in bankruptcy, attend two counseling sessions, cannot be a director of an incorporated company, may lose tax refunds during your bankruptcy, will not receive GST cheques while bankrupt, cannot obtain any credit as an undischarged bankrupt and your bankruptcy remains on your credit rating as an R9 for six years past your date of discharge.

Most people are “In Bankruptcy” for a term of 21 months, but some are in bankruptcy for as few as nine months.  Second-time bankrupts can be in bankruptcy for a longer time period, for up to 24-36 months.

Like a consumer proposal, once you have filed for bankruptcy, most wage garnishments stop immediately and collection agencies no longer call or contact you. In addition, interest stops accumulating on your debt. You can also start to begin to rebuild your credit. Your debts must be more than your assets to file for bankruptcy, what’s known as insolvent. You must also provide full disclosure of all of your assets, liabilities, income and expenses, cannot pick and choose debts you include, cannot leave out support or alimony obligations or student loans under seven years and cannot include secured debts like mortgage and car loans. You are allowed to keep assets like RRSPs, however.

Its very important to remember, a debt restructuring plan should be carefully planned and a full understanding of the benefits and the implications and should extend far beyond just getting people out of debt, it should be about teaching consumers about debt, the differences between good debt vs bad debt and how to manage their money to meet long term financial goals. At 4 Pillars we work to represent the interests of the debtor through a debt restructuring program which includes ‘post restructuring’ services to effectively rebuild credit, regain financial stability and help identify how to take control of your financial situation and meet long term financial goals. 


About the Author:

Robert Glen owns the 4 Pillars Consulting West Windsor, On office helping people get out of debt  every day.  If you need a free consultation to understand your options please feel free to contact Robert at (519) 969 – 8231 or visit his website here

4 Pillars Windsor debt consultants can help your restructure your debt and find financial freedom once again.


Book your free consultation.

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