A 4 Pillars Consultant in Victoria Can Help Your Firm Get Rid of Debt

Businesses in Victoria take out loans for a number of reasons, such as when they need to purchase real estate, obtain equipment to expand their operations, or to increase their working capital. The decision to borrow money, however, comes with the risk of not meeting the terms of the loan. When that happens, a business can be buried in debt and become bankrupt.

4 pillars victoria

Debt Restructuring

Thanks to debt solution providers, many businesses with huge debts manage to recover. Debtors can resort to either a Consumer (Division II) Proposal or a CCAA/Division I Proposal depending on their size and the amount they owe.

Consumer (Division II) Proposal. Small businesses that owe $250,000 or less can file a consumer proposal. This debt restructuring option helps reduce a debtor’s financial obligation to a level that would satisfy the creditors. All the debtor needs to do is to find a trustee that will file the proposal and oversee the settlement process. Most payment plans created through this proposal include payments to be made over a predetermined period without interest and levied additional costs.

CCAA/Division I Proposal. While a consumer proposal is for small businesses whose debt does not exceed $250,000, a Division I Proposal is available even to individuals or businesses whose debt is above this limit. This debt restructuring option may also come with a longer payment term than that of a consumer proposal. Both, however, protect debtors from creditors taking legal action, wage garnishments, and asset confiscation. If the creditors do not accept the proposal, however, the debtor will have to declare bankruptcy, which then allows the creditors to repossess assets used as collateral and other possessions.

Debt Consultant

Since debt restructuring can be complex, especially for business owners who are facing a financial downturn for the first time, there is a need for the expertise of debt consultants from established firms like 4 Pillars when filing a proposal. A 4 Pillars debt consultant like Blair Greenwood can thoroughly analyze a client’s financial situation and provide the most lucrative debt restructuring option. Rather than dealing with debt on their own, debtors can have a better chance of recovering fast by bringing a consultant on board.

When looking for a debt consultant, debtors would do well to pick a professional with a solid industry background and a deep understanding of matters pertaining to personal finance and small businesses. Consultants from top 4 Pillars consulting firms, such as Blair Greenwood, use their vast experience in dealing with numerous cases to help individuals and businesses recover from their financial issues.


You Owe Money — Process for Division I Proposals, ic.gc.ca

Why Would a Creditor Accept a Consumer Proposal?, consumer-proposals.org

Can I file Chapter 7, 11 or 13 bankruptcy in Canada?, bdodebthelp.ca