Case Study – Business Failure

Debt troubles even those you’d least expect. This case study reviews the events of a family who seemed to have it all – two incomes, two cars, the house, the kids. One partner had even started their own business. Nevertheless, under the surface, debt threatened to ruin everything they had built.


The couple had spent most of their lives together having two healthy incomes. This allowed them to purchase a nice house, finance brand-new vehicles, send their kids to sports camps in the summer – everything they had dreamed of! However, things changed when one partner decided to leave their position and open their own business. Because they had good credit, they had no issues accessing a $30,000 line of credit to get the business up and running.


Debt can be a symptom of any number of problems and life circumstances. However, it is important to understand that YOU ARE NOT YOUR DEBT.

At 4 Pillars Halifax, we'd love to discuss how we can help you become debt free.

Unfortunately, the business did not pick up as quickly as they would have liked and so they began to find it difficult to make their vehicle payments and other bills. They ended up taking out an additional loan to cover the business expenses. The more they tried to keep the business afloat, the deeper into debt they fell. Once the banks stopped lending and began asking for payment, they tried to adjust their budget. Quickly realizing that the debt had swelled past the point that they could budget their way out of it, they contacted 4 Pillars.

The Plan

During the initial phone call with 4 Pillars, we learned that this couple had approximately $80,000 in unsecured debt. They had a combination of credit cards, loans, and lines of credit from various institutions. To just cover their interest payments, they were paying nearly $1200/month. Even that was a struggle for some months. Although they had built equity in their home, it was not enough to help them get ahead of their debt and refinancing wasn’t a viable option. A friend had once mentioned filing bankruptcy, but after learning how asset “buy-back” payments work, they had serious concerns about the affordability of bankruptcy and the potential to lose their home. Although it would get them out of debt the fastest, it would likely cost them more per month than they were paying now. Instead, they opted for a consumer proposal. A proposal would protect the assets they had worked so hard for while significantly reducing the debt load.


Their debt was reduced to $24,000, leaving them with a monthly payment of just $400/month. Several months after filing their proposal the business they struggled so hard to keep afloat finally began taking off and through the 4 Pillars Aftercare portal they were able to learn a plethora of money management skills to change their habits, rebuild their credit and keep them on the right path.


Becoming overwhelmed by debt is something that can happen to anyone. When a business is involved things are always more complicated and it can be easy to get lost in it all. Regardless of the circumstances that bring people to the breaking point, 4 Pillars is ready to talk to you about what your next steps should be. Reach out to 902-482-9748 if you’re troubled by debt to find out if 4 Pillars can help.

Our process first starts with a free consultation to understand your options. To schedule one, please fill out the form below and someone will be in touch as soon as possible.

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Debt Relief SpecialistThis article was written by David Moffatt. A Senior Debt Relief Specialist with 4 Pillars Halifax. 4 Pillars has assisted in creating plans that have helped save Canadians over $1 Billion dollars of consumer and tax debt since 2002. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring plans can help you cut your debt by up to 80% with less than 3% of our clients ever getting into deep financial difficulties again. If you are struggling with debt please reach out. It hurts to continue to suffer financially.

4 Pillars Halifax services Halifax, Dartmouth, Bedford, Sackville and the entirety of HRM.