Proposal Process & Recovery

We’ve all heard about Bankruptcy and the stigma that goes along with it, but very few of us have much knowledge about either the process or the alternatives, the most common being Proposals. In a Bankruptcy, everybody loses almost everything, except for the trustee, whereas with a Proposal, everybody gets at least something.

A Proposal with 4 Pillars:

  • Offers erasing of debts and allows debtor to keep assets via payments that debtor can afford.
  • Record on his or her credit score will appear until the settlement is complete (Typically 5 years).
  • The debtor may keep his or her assets.

With a Proposal, your debt burden may be reduced to as little as 20%.

Benefits Of A Consumer Proposal:

  • Most wage garnishments cease immediately
  • Interest tops accumulating
  • Collection agencies and creditors can no longer contact you
  • Repayment period is up to 60 months
  • Easier to rebuild credit than bankruptcy
A good debt reduction plan will allow you to repay your debts affordably while still being able to meet your everyday living expenses. Paying all of your bills on time will have a positive effect on your creditworthiness.

A 4 Pillars Agent will review your current financial situation and outline a personalized plan before applying for a Phoenix Fund loan. The immediate goal is to get you out of debt and get you into a payment plan that you can easily afford. Doing this will remove the stress of debt, and protect your assets.



Let 4 Pillars communicate with your creditors for you.

4 Pillars specialize in debt mangement and work with you and your creditors to develop a debt reduction strategy that is mutually agreeable. A 4 Pillars agent will structure a new affordable payment plan to deal with your debt, either through a comprehensive budgeting program, or if required, through a bankruptcy trustee.

If structured correctly, a proposal will usually repay a portion of what you owe, and its common for clients to eliminate 80% of their debt. Creditors generally prefer this to you going bankrupt, in which case they would usually receive nothing.

You must be insolvent (debts are more than assets), you can’t pick and choose the debts that are included (all debts must be included), and you cannot eliminate support or alimony obligations. You cannot eliminate student loans under 7 years old and you cannot include secured debts such as mortgage and car loans. You are however, allowed to keep assets based on Provincial legislation.

Through this process a debtor is required to give "full disclosure" of all their assets, liabilities, income and expenses as well as business interest as part of the process.



The Phoenix Fund Debt Restructuring Loan

If you are currently in a proposal and have been making payments for at least 24 months, The Phoenix Fund may buy out your proposal.

The Phoenix Fund team will review your application and provide an affordable loan offer with terms and a payment plan. If you accept, you'll be given access to our Marble personal financial dashboard which will enable you to view your loan details, create budgets and goals, and track your own spending.

Apply for a Phoenix Fund Loan



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