How Bankruptcy Saved One Single Mom’s Life & Gave Her a Fresh Start

In an economic climate where financial stability can feel elusive, stories such as that of Perri, a single mother who found solace in bankruptcy, shed light on the potential benefits of taking bold, albeit intimidating, financial steps. This article delves into Perri’s journey, illustrating her struggles, decisions, and ultimate victory over insurmountable debt.

The Struggle

Unyielding Creditors

Perri’s struggle involved juggling the responsibilities of being a single parent, a full-time student, and a debtor. Despite her best efforts to negotiate a reduction in the interest rates on her credit card debts, her pleas fell on deaf ears. She approached her bank multiple times to lower the interest rate from a staggering 20% to a manageable 10%. These attempts, however, were futile, and her financial situation remained unchanged.


Things took a turn for the worse when her mortgage company foreclosed on her home. Despite paying nearly sixty thousand dollars towards the mortgage, Perri hadn’t even made a dent in the principal. The mortgage company’s advice to find a new lender or pay the initial amount she borrowed felt like a cruel joke.

The Turning Point

The Employer’s Intervention

In her despair, Perri confided in her employer, who then referred her to a credit counselor. The credit counselor directed her to a Licensed Insolvency Trustee, a decision that proved to be a pivotal point in her journey.

Meeting the Insolvency Trustee

Meeting with the Insolvency Trustee was a breath of fresh air for Perri. The Trustee patiently explained her options and how she could finally rid herself of her debts. The possibility of being debt-free seemed almost unreal given her years of struggling to pay off her debts.

The Solution

Declaring Bankruptcy

The Trustee advised Perri to declare bankruptcy, a decision that initially seemed daunting but eventually proved to be a wise choice. She realized that her years of making monthly payments towards her credit card debt hadn’t made much of a difference. The Trustee’s plan of making smaller payments for 21 months until she was debt-free seemed like a miracle.

Overcoming Shame

Perri reflects on the shame and guilt that kept her from seeking professional help earlier. She believed that she had failed by not being able to repay her debts. However, she soon realized that she took on the debt to support her family, and she had paid back the credit card debt multiple times over.

Life After Debt

A Fresh Start

Perri’s life took a turn for the better after declaring bankruptcy. She was finally free from the shackles of debt and was able to provide a stable home for her children. The experience taught her that there was indeed life after debt, and sometimes, a fresh start is all one needs.

Trustee Means Freedom

Working with a Trustee means freedom from debt, as Perri discovered. Bankruptcy was the right choice for her situation, but there are other options available for different circumstances.

Alternatives to Bankruptcy

While bankruptcy worked for Perri, other options such as a consumer proposal can also provide debt relief. A consumer proposal is an alternative to bankruptcy and can be a viable option for many individuals struggling with debt.


Perri’s story is a testament to the fact that there is life after debt. With the right guidance and decisions, it’s possible to overcome financial adversity and start afresh. If you’re struggling with debt, consider reaching out to a professional who can guide you through your options. Contact us today to get started on your path to financial freedom.

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