- Meet Ruby, a young professional restarting in a new province
- Family status: Single
- Location: Hamilton, ON
- Age: Early 30s
- Insolvency solution: First-time consumer proposal (2025)
Ruby’s experience reflects many of the themes uncovered in our Debt Load and the Impact to Psychological Wellbeing Study: the emotional cost of debt, the role of stigma, and the profound mental health improvements Canadians report after insolvency.
Before insolvency: “I was starting over. Then it all collapsed.”
When Ruby moved from Quebec to Ontario, she carried only moderate debt and a sense of hope. She started a cleaning business with her sister during COVID, went back to school, and slowly began paying down what she owed.
“I was making progress, responding to debt collectors, making payments on my BMO credit card, and finishing my last semester of school.”
But as the business grew to 11 locations, everything imploded. Her sister took the locations and started a new company with her husband, leaving Ruby suddenly without business income.
Her savings became her only lifeline for five months. At the same time, she moved into a new apartment and started a new job – but by then, her savings were gone and she was living in overdraft, relying on her parents and partner to afford groceries.
“At 31, I needed my parents to help buy groceries. It was humiliating.”
The final blow: when she went to pay her rent, her entire paycheque was garnished by RBC.
“I was constantly living on edge, stressed about money, and struggling to pay my bills.”
Mental health impact: “Every day felt like a battle.”
The debt didn’t just affect her bank account – it affected her mind and body.
“My financial situation significantly affected my mental health. I experienced increased depression and suicidal thoughts, and the stress began to take a physical toll.”
She describes:
- Depression and suicidal ideation
- Chain-smoking a pack a day
- Using alcohol to cope
- Withdrawing from friends because she couldn’t afford to go out and felt like “a loser”
“Every day felt like a battle. I felt like I had no fight left in me, and even when I was earning money again, it still never seemed enough because of the large debt I was facing.”
Her experience reflects core findings in our national study, where Canadians reported:
- 82% constant worry
- 74% poor sleep
- 57% depression
- 17% severe psychological distress
Debt wasn’t just affecting her finances – it was consuming her mental health.
The turning point: “On my 34th birthday, I just cried.”
Ruby had reached out to a debt counsellor in 2023 – but the interaction left her feeling worse, not better.
“They were not welcoming. It put me in an even more negative headspace and made me feel trapped.”
She carried that shame for nearly two years, delaying help and trying to cope alone. On her 34th birthday, everything came to a head:
“When my birthday came, all I could do was cry; I felt completely hopeless.”
She prayed for guidance and finally put her pride aside.
“I remember praying and asking God for guidance. I finally put my pride aside and started researching options for filing a consumer proposal.”
That’s when she found Spergel, through Google reviews and online research. Making the first call was terrifying:
“Honestly, I can’t repeat it enough: I felt ashamed and scared.”
But that call changed everything. She spoke with Douglas – who, it turned out, was from her hometown.
“The conversation flowed naturally, and I never felt so comfortable in my life. That first conversation alone made me feel like I was moving out of a dark tunnel and into the light. I felt hopeful again.”
The process: “For the first time, I didn’t feel like a failure.”
Working with Douglas and the Spergel team, Ruby finally felt seen and supported – not judged.
“Having someone non-judgmental, like Douglas and the rest of the team, reassure me that I am not alone, that I’ll be okay, and that Spergel would take care of everything, gave me a true sense of hope and belonging.”
The consumer proposal gave her:
- Protection from overwhelming debt
- An end to collection pressure and wage garnishment
- A clear, structured, legal path forward
It turned a situation that felt like a dead end into something she could manage.
Aftermath: “What is depression now? I feel happy.”
Post-filing, the change in her emotional wellbeing has been dramatic.
“Oh man, what is depression now? I feel happy. I feel confident and in control of my life again.”
Through mandatory credit counselling and new habits, she’s rebuilt her relationship with money:
- Checking flyers before buying groceries
- Withdrawing only the cash she needs each week
- Avoiding purchases she can’t afford
- Giving every dollar a job (bills, food, leisure, entertainment)
Her story aligns directly with our study’s finding that mental health significantly improves after insolvency.
Her message to others who feel too embarrassed to ask for help is powerful:
“Pride is a deadly thing, and nothing under this sun is new. Put your pride aside and seek the help you need!”
Expert commentary: Rob Kilner, Licensed Insolvency Trustee
“Ruby’s story shows exactly what our study uncovered: that debt isn’t just a financial problem – it’s a mental health crisis. Her experience mirrors what we see in the data: constant worry, sleepless nights, depression, even suicidal thoughts. And like 87% of the people in our study, she reports a significant improvement in her mental health after filing a consumer proposal. Her journey demonstrates why compassionate, judgment-free help is so critical.”
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