Mortgage related questions

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Will it affect my mortgage renewal?

Banks are in the business of making interest instead of trading in real estate. So if you are in any of our debt relief plans and continue to make the agreed mortgage payments to the lender, without missing any payments, the lender will usually be in an position to renew the mortgage.

Can Mortgages be included in a debt reduction plan?

Mortgage is backed by an asset, which is the house for which the mortgage was taken. So if you do not fulfill your mortgage obligations the lender can enforce the foreclosure. So if you intend to keep the house, continue paying the mortgage

What are my options if I wanted to get out of my mortgage contract?

Yes, there are options based on how far you are behind in your payments and what the value of your property looks like.

Do you provide 2nd Mortgage?

Yes, we have access to exclusive lenders and brokers who will provide this for you, if this is the best way to deal with your debt

When and how can I apply for a new mortgage after the debt relief program?

To qualify for a mortgage your income must support both the current debt payments and the new mortgage you are applying for. There are 3 factors that affect the ability for someone to obtain a mortgage: credit rating, income and the down payment. After going through a restructuring program you are usually in a better position to meet the debt service ratio as you have significantly reduced your additional debt which allows you to meet the debt service guidelines and cash flow is free to help increase your efforts to save for the down payment. Our credit rebuilding program is tailored to meet the CMHC mortgage lending guidelines. A well-executed debt restructuring plan can make home ownership a reality sooner than struggling to pay down debt and trying to maintain your credit score.

I am in foreclosure, can you help me?

It depends on what you are looking for. If you are looking to get a loan to pay the foreclosure amount and you do not have any equity it will be very difficult for anyone to find a lender but if you feel you have the income to support this and we can reduce your other debt through a debt restructuring plan this may become a viable option.If you are looking for protection from the creditors and a plan to deal with any potential shortfall we can certainly help you.

Can the creditors put an lien on my property?

Creditors can put a lien on your property once they have obtained a judgement through the courts, this can be stopped if you deal with the debt early in the process.

Can a Home Equity Line of Credit (HELOC) be included in an debt relief program?

HELOC is different from an normal LOC because you have pledged your house as security.So it is treated like a mortgage and cannot be included. But there are some situations which we can work with you and it is better to use the FREE consultation to discuss further.

Common Myths

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In Bankruptcy I do not have to pay anything back so why is that not better?

In Bankruptcy what you pay back is calculated based on your income and your assets and isdetermined by the Bankruptcy and Insolvency legislation. Every trustee has a minimum fee which has to be paid even if you wanted to file Bankruptcy. So in short, you will have to pay something back and that something is based on your financial situation. You will also be required to complete monthly income and expense forms during the period of bankruptcy and if your income changes you may be required to pay back more and your time in bankruptcy may be extended, also if you come into any windfallduring the bankruptcy period this must be disclosed and may need to be paid to the Bankruptcy Trustee. We can work with you to understand how much you will pay in Bankruptcy and whats assets you will lose so you can make an informed decsion.. Bankruptcy has a long lasting impact and you need to fully understand the implications and review all the other options before proceeding.

Making minimum payments will allow me to become debt free?

This myth is killing of many Canadians. Please look at the credit card statement closely and you will find the number of years it will take for you to be debt free if you continue to make minimum payments. The majority of the minimum payments you make goes towards interest so if you are only making minimum payments you could be in an never ending payment plan.

Non-Profit organizations mean they are backed by the government?

“Non-profit” word is for taxation purpose and not for any government debt program. There is no program where the government will pay the debts for you. The companies which identify as non-profit debt companies are usually funded by the creditors and the client usually pays back100% of the debt with the same impact on your credit rating as other debt restructuringplans that actually reduce the amount owed.

All organizations work for the debtors?

This is certainly not the case. The credit counsellors which advertise themselves as non-profit are usually funded by the creditors which questions who they are truly representing. The role of a Bankruptcy Trustees is to represent the creditors and also get paid as per the tariff structure set by the legislation which increases or decreases depending on the amount the debtor pays back.

So if they structure the monthly payment plan high, they get more fees. As per the wordings in the Federal document “ The trustee represents your creditor and is an representative of the court”.
So in reality as you can see not all organizations work for the debtors, in fact the exact opposite.

A 4Pillars debt relief program will do permanent harm to my credit rating?

The reality is that your Credit Rating and Credit Score can be repaired, whereas money spent servicing debt is gone forever!

Ironically, people who struggle with debt often expend considerable effort in trying to pay their bills regularly and on time. The creditors also scare people about bad credit. The result is someone who is deep in debt, but has a “top notch credit rating”. Those struggling with debt often fall under the impression that despite their debts, they have excellent credit rating and that eventually the debt will be paid off. The sad fact is that those attempting to pay their debts month to month are on a path that often has no end in sight for many years – even decades. Someone with debt of $40,000 is paying anywhere from $800 – $1200 a month, just to service the debt. When making that minimum payment only it could take upto 25 years to pay off the debtSo that is paying about $200,000 on a debt of $40000. All that money put towards paying off large debts, bit by bit is money that can never be recovered. The person in debt may have an“Excellent credit rating”, but their bank account is emptying at an alarming rate. In other words, the debtor’s stellar credit rating is decimating his or her bank account. Normally people would have also tried to consolidate their debts through their banksbutthe bank denies them a loan because their income doesn’t support the debt load they carry so an excellent credit rating doesn’t help. What the 4Pillars program does is to stop the financial bleeding and help youget into a program where you can pay off the debt in a timely manner and save money. Under the above example where a person has $40000 debt, nearly 75% of our clients pay approximately $15000 and at 0% interest. Compare that with the $200,000 the debtor would pay in a never ending plan. Credit can be rebuiltAndmore importantly, 4 Pillars Consultants are experts at helping individuals repair their credit ratings. Best of all, someone who has gone through our program may start fresh and devote their additional cash flow to ordinary living expenses, saving for a home, invest in RRSP’s and begin creating wealth for themselves.

Debt and Credit related FAQ’s

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Can credit be rebuild?

Absolutely yes!! We are experts at helping individuals repair their credit rating. Our unique credit rebuilding program is structured to get you back on track as soon as possible. In additionour partnership with Transunion, one of the credit reporting agency in Canada, helps our clients monitor their credit score and stay on track.

How can I get the collection agencies of my back?

When you walk through the 4 Pillars debt relief program, you will get collection agencies of your back. The process we follow can provide legal protection from the collection agencies andputs an end to the collection calls and even their right to adding interest on your debts

What are my rights as far as collection agencies are concerned?

You have many rights as far as dealing with collection agencies. Collection agencies may not make repeated attempts to collect provided you have informed them about what you are planning to do and also taking action on that plan. They may not contact you at work provided you give them an alternate number to call. They cannot discuss your debts withsomebody other than you. Both the debtor and the collecting agencies have their own rights which we will explain when somebody is our client. Ultimately the way to deal with the collection agencies and your debt is to create a long term sustainable plan not a short term measure to stop the calls.

How much time does a debt remain on credit bureau?

The debt remains on the credit bureau 6 years from the last activity. People mistake the activity as when they paid last. The activity is defined as when the creditor has tried to collect the debt and reported to the bureau. So the creditor requires to only inform the Bureau as what action they took to collect the debt and this then reactivates the date of last activity. In Canada, the credit system is heavily loaded in favour of the creditors and hence it is better to take professional help in getting all this corrected.

Can the errors on my credit bureau be corrected?

Yes, the errors can be corrected. Please contact us and we will give you astep by step approach to correct the errors and rebuild your credit.

Can I get an new vehicle once I do an debt elimination plan?

Absolutely yes. In fact, you can get into a new vehicle immediately the plan is accepted by the creditors. At that stage, our lending partner will help you get into an vehicle at reasonable interest rates.

What is an difference between Credit Counsellor and 4Pillars?

Credit counsellors program is veered more around to paying more than what you owe. Because more you pay more the counsellors get paid. Moreover it is <b>not an legal process</b> where an creditor is bound to accept the plan. The payments are not based on affordability and it is difficult to rebuild credit simultaneously when you are in the program.

4Pillars program is based  upon affordability and is also an legal process to stop the creditors from taking any action against you. 75-80% of our clients pay back 20-25% of their total debts in an affordable monthly payment plan at 0% interest. Moreover we also help you rebuild your credit when you are in this program.

Our plan is totally structured to benefit our clients, the debtors. We do not get paid from the creditors, so we do not have any conflict of interest. While the counsellors get their money from the creditors so their clients are the creditors and not the debtors.

Can I get an loan to pay off my debts ?

Yes, you can get a loan. We have a unique program which helps our clients get an loan to pay off their debts. Obviously it is all based your unique situation so we will have to discuss your requirements and how we can meet your needs.

How can I rebuild my credit faster ?

Our program is tailored to maximise the credit rebuilding process and increase your score in the most effective manner.

Banks and Collections agencies say that they will garnish my wages. Is that true?

Banks and the collection agencies can garnish the wages providing they have follow the legal process to obtain a judgement and it is always recommended you deal with your debt before it reaches this point

Do I need to cash in my RRSP’s to pay off my debt?

No, RRSP’s can be exempt in Alberta under the Bankruptcy and Insolvency Actand therefore RRSP’s LIRA etccan be protected.

What information is required for your process?

This is a situation based question and hence it is better you use the free consultation to see what will be required. Our role is to protect you from credit or sand find a long term solution to your debt problems and we will provide all the details on the process and required supporting documents. Normally, what is included is income, assets, liabilities and in time an understanding of your income and expenses.

Can personal taxes be included ?

Yes, they can be included. CRA looks at the intention and compliance so that is what we guide you on so that CRA will consider your proposal

How many times can a proposal be filed?

As long as you complete all the requirements under the first proposal you can file a second proposal if you have incurred more debt..We are not in the business of repeat customers and our plan aims to educate you on how to handle debt in the future and spot the warning signs prior to getting into financial difficulties again.

Will I ever be liable for the debt that wasn’t repaid under the proposal?

No, the proposal becomes a new contract with you and the creditors and if structured correctly you will not be required to pay off the remaining of the debts..

Program questions

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What is your debt relief program?

Our debt relief program is based on finding a plan that is affordable to you. Our goal is to see our clients pay off their debt and increase cash flow to meet their long term financial goals.Most of our clients save between 75% to 85% from their original debts. The payment plan is also at 0% interest.

What is 4Pillars background and experience in debt relief?

4Pillars has been in business for over 12 years in Edmonton and is also licensed and bonded with the government of Alberta. We are a national company so we track all the creditors on an national basis and closely monitor all the proposals we file and the creditor acceptance rate. undereachcircumstance. We are the pioneers in effectivecredit rebuilding supported by our partnership with Transunion.

What is the advantage in working with 4Pillars to get out of debt?

4Pillars mandate is to work on behalf of the debtors and everything we do is governed by this.We do not get paid by the creditors and our interest is structuring a payment plan as low as possible. The debt restructuring piece is only a small part of the 4Pillars program and a key part of any plan that is to often over looked is implementing a comprehensive credit rebuilding plan, without this you will only see part of the up side of debt restructuring and not experience all the benefits. Our goal is to get you bank into mainstream banking and lending products in the shortest time possible. We provide unique products exclusive to our program that accelerate your return to financial stability.

Will debt reduction affect my credit?

Anytime you do not pay as the creditors as per the orginal terms and conditions of the lending there will be an ipact on your credit rating. Credit can be rebuilt and we will help in analysing if thetemporary hit on your credit is worth the savings and allows you to meet you long term financial goals faster. dollars.

I do not have assets. Can I still qualify for the debt relief program?

Yes, Yes and Yes. Under the legislation they are certain assets that are exempt and we will help you understand which assets are protected and structure the proposal so that you retain the assets and deal with your debt

Can I do this on my own?

Yes, you can do this on your own. Our expertise lies with fully understanding the legislation and how to structure a proposal to maximise the benefits to you. Remember by doing this on your own you will be dealing with industry experts by either dealing directly with the creditors or dealing with a Bankruptcy Trustee. There are 1000’s 0f Trustees across Canada and every Trustee views aspects of the Bankruptcy and Insolvency Act differently and depending on which one you see can have a drastic impact on how they will structureyour proposal. We have access to 100’s of Trustees and will find the right Trustee for your individual situation. Think of it like a mortgage broker with access to 100’s of lenders to find you the best possible mortgage vs a bank employee with only access to that banks products.

Why do you charge fees and while credit counsellors do not charge fees?

The mandate of any credit counselling program is to collect 100% of the debts plus some interest and administration fees. We do not get paid from the creditors as we truly represent the debtors. Our role is to see how our clients, the debtors, can be legally protected and also pay back an amount that is truly affordable. 97% of our clients entering into a debt restructuring plan successfullycomplete the program, we believe this to be the highest in the industry and is due to the long term commitment we show to our clients wellbeing. We understand that debt restructuring plans have a 50% failure rate in the industry.

What are your fees and how are theypaid?

There will be absolutel full disclosure of our fees when we meet with you. In fact, the process would not start without you knowing the fees and fully understanding what services you are receiving for the fees paid.We are licensed and audited by the government of Alberta so we cannot charge fees which is not mandated by the government. The fees are based on your situation, the work involved in your file and andaffordability.

How the fees is to be paid is also discussed and structured based on what the clients affordability is.

What is the success ratio of your clients in getting out of debt ?

In the last 11 years we have been in business in Edmonton, the success rate of our proposals being approved is over 95%.

Do banks accept your plan?

Absolutely yes.

Is your debt relief program legal?

Yes, it is covered by the federal insolvency legislation

I want to only reduce my credit cards and not my other unsecured debt. Is that possible?

Absolutely yes. We can discuss the options to do this and structure a plan that works for you. We will also review the advantages and disadvantages of doing this and how it may restrict some options availableto you.

I do not want anybody to know about my situation. Is this confidential?

Yes, we are bound by our privacy policy and all the information you provide remains confidential and we only share this with your consent to parties critical to the restructuring process ie the Trustee and your Creditors.

Collection agencies related questions

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The collection agencies are behaving rudely?

The collection agencies are represented by agents who usually paid a commission based on what they collect. The agencies are also bound by a code of conduct which is not known to majority of the debtors. We explain this to the clients so that they are aware of their rights and are not unnecessarily bullied by the collection agencies

Will somebody knock on my door if I do not pay the money they are demanding?

No, there are laws in Canada which are applicable for all the creditors.

Will your process help me handle the collection agencies?

Collection agencies cease to collect the debt once the legal process is put in place. So our process will put an end to the collection agencies pursuing you.

Situational questions

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I have a student loan, Can that be reduced?

Student loans are not a normal unsecured debt. The legislation states that for a student loan to be considered in a debt relief plan, a debtor has to be out of school for the last 7 years.

One of my credit card companies called me and said that they will accept 50% of my debt as a settlement. Is that possible and what is the catch?

That is a distinct possibility. The catch is that the amount usually has to be an lumpsum amount and given they are willing to accept this there may be greater savings to be had with one of the other options to deal with your debt, remember that settling with only one creditor doesn’t always solve your problem and does not mean the other creditors will accept the same amount..

I have a failed business and because of that there is too much CRA debt for me to pay, can that be included in the debt elimination process ?

Yes, that can be definitely done. We will walk you through the process and this will take some careful planning to ensure the business is dealt with in the correct manner to ensure there is no future liabilities.

I do not want my spouse to be a part of the process. Is that possible?

Yes, we can always do that.

I have an high interest personal loan with an Financial company who has secured my furniture as an collateral. Can that be included?

Absolutely yes.. The value of the loan can be tied only to the value of the assets. We have been dealing with these type of loans for more than 12 years and will create a plan to deal with this.

What type of debts cannot be included?

Secured loans like mortgages, car loan, HELOC, property taxes cannot be included in our plan. The other types of debts which cannot be included is Family Maintenance, alimony, theft of trust money or any other fines.

Credit Rebuilding

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Is rebuilding mycredit score easy?

Let’s be clear about the limitations. What a consumer cannot do is pay “some guy” in a back alley $50 and magically have amazing credit. The credit system doesn’t work that way. The only way to build a strong credit score is to use the credit you have responsible or for those just starting out – to obtain new credit and then use it responsible. You cannot remove items from your credit report if they are accurate but you can correct inaccurate entries and begin establishinga positive credit history. There is no majic bullet and no overnight fix to bad credit it requires a proper plan and a commitment to implement it.

I have bad credit, how can I build my credit score?

What many consumers don’t realize is that not all types of credit are the same. You have to know how to start and how to build on each new financial. It’s understanding how the credit system works, having access to the right products at the right time and making sure you stick to a few basic rules that builds a strong credit score

Why is Credit rebuilding so important?

Everybody needs to build their own credit score. Students, men, woman, and seniors you name it. It is one of those things you never realize how important it is until you need it. Remember, once you have built up a strong score you have access to the best lending rates when you need it and are not reliant on short term high interest loans that can be financiallycrippling. and it only takes a few years no one can take it away from you.

Can I have good credit if I have bad credit right now ?

A good credit score has nothing to do with the house you live in, the car you drive or how much money a year you make. It is about following a few simple credit rebuilding rules and the rest is pretty straight forward. Anyone can have amazing credit and having good credit is key to creating wealth in North America.

Is age an barrier have rebuild credit?

You must be 19 years or older start building your credit rating. The sooner you start the sooner you can rest easy you have made the right choice. Be careful though as you need to fully understand how to manage the credit you obtain and use it responsibly as a good credit score will lead you to get potentially more credit than you will need.