From overwhelming debt to financial freedom: David’s bankruptcy success story

Meet David, a Toronto resident who, after serving time in prison, found himself facing a mountain of debt upon release. Uncertain about the best path forward, David reached out to Spergel, one of Canada’s leading insolvency firms (the ‘get rid of debt’ people), to explore his options and regain control of his financial future.

Client Background

David, a resilient and determined individual, emerged from a challenging period of incarceration facing a complex financial landscape. As if life wasn’t tough enough, he now had to grapple with overwhelming debts. Living in downtown Toronto, he had substantial debts, including a staggering $750,000 judgement repayment, $38,000 in restitution, $3,000 in payday loans, and an additional $1,000 owed to Service Ontario. Uncertain about the status of his taxes, David recognized the need for a fresh start and sought help and support from Spergel. With a monthly income of $3,000, David’s journey towards financial recovery became a testament to his determination to overcome adversity and rebuild his life. Spergel’s team of Licensed Insolvency Trustees, understanding the nuances of his situation, guided him through the intricacies of bankruptcy, providing tailored solutions to discharge his debts and offering ongoing support for a brighter financial future.

David's story

The Challenge

There were no two ways about it – David’s financial situation was complex. He had accumulated a $750,000 judgement repayment debt, $38,000 in restitution, $3,000 in payday loans, and owed $1,000 to Service Ontario. Additionally, he wasn’t sure if his taxes were in order, or where to begin. His family had been looking after them during his prison sentence, but he wasn’t sure if they were current. With an income of $3,000 per month, David felt overwhelmed and sought a debt relief solution that would allow him to begin the fresh financial future he needed.


Upon assessing David’s financial landscape, Spergel’s team of experts crafted a bespoke plan to address his unique challenges. Recognizing the need for a fresh financial start, David’s dedicated Licensed Insolvency Trustee explored the option of bankruptcy. Bankruptcy provided a legal framework for David to discharge all of these debts and embark on a path to financial recovery. Spergel’s team facilitated the bankruptcy process, negotiating with creditors to manage and consolidate the outstanding debts within the confines of the legal proceedings. The team also provided guidance on his tax obligations, ensuring all necessary filings were up to date. This comprehensive approach ensured that David’s financial reset was not only effective, but also tailored to his specific circumstances. The solution not only allowed him to shed the burdens of the past but also laid the groundwork for rebuilding a more stable and secure financial future.


Spergel worked closely with David throughout the bankruptcy process, providing him with the necessary information, education, and support. The team initiated negotiations with each of David’s creditors, communicating transparently and effectively to consolidate and manage his outstanding debts. This involved navigating the legal intricacies of bankruptcy, ensuring that all relevant documentation and filings were carefully prepared and submitted. David’s Licensed Insolvency Trustee provided him with a clear roadmap of the process, addressing his concerns, and offering guidance every step of the way. At Spergel, unlike other bankruptcy firms, you are assigned your very own Licensed Insolvency Trustee to see you through each step of the journey, instead of being passed from person to person. This hands-on approach not only streamlined the bankruptcy process, but also alleviated any anxieties David had during this significant financial transition.


David successfully filed for bankruptcy, allowing him to discharge his debts and regain financial control. Spergel’s expertise ensured that the process was efficient and tailored to David’s unique circumstances. The $750,000 judgement repayment, $38,000 restitution, and other outstanding debts were managed within the framework of the bankruptcy proceedings. With a clear financial plan in place, David could then focus on rebuilding his life, offering huge relief and a positive refresh.

Spergel’s support didn’t end here – David’s Licensed Insolvency Trustee continued to support him beyond the bankruptcy filing. They offered financial education resources and tools to help him make informed decisions about rebuilding his credit and managing his finances responsibly. Additionally, the team guided him on maintaining a budget, tracking spending, and developing a sustainable financial strategy.


David’s success story highlights the transformative impact of expert financial guidance. Spergel’s comprehensive approach not only helped him navigate the complexities of bankruptcy, but also provided ongoing support for rebuilding his financial future. Through personalized solutions and a commitment to client success, Spergel played a crucial role in helping David move from overwhelming debt to a fresh start.

Client Testimonial

Spergel has been a true lifesaver for me. Facing overwhelming debts and a very challenging time in my life in general, they expertly navigated me through the bankruptcy process with compassion and efficiency. Their hands-on approach made the process seamless. Now, I’m on the road to financial recovery, free from the burdens of the past. Thank you, Spergel, for providing the support I needed for a fresh start.” – David, Toronto

How Spergel can help you

At Spergel, the ‘get rid of debt’ people, our expert Licensed Insolvency Trustees have been helping Canadians to gain debt relief for over thirty years. We help individuals in various ways to improve your financial wellbeing. In this scenario, our approach focused on detailed spending tracking in order to budget and live within your means. Here are some ways we can help you:

  • Debt consolidation and management – making debt easier to handle and reducing overall interest payments.
  • Budgeting – we help to create realistic budgets and financial plans tailored to your needs.
  • Credit counselling – we offer guidance on improving and maintaining a healthy credit score. 
  • Debt relief – for any individuals facing significant financial challenges, we provide advice on your options including bankruptcy and consumer proposals, guiding you through the process and helping you make informed decisions.

By offering a range of services and expertise, we aim to empower individuals to gain financial freedom and to take control of their finances to build a more secure future.

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