From Debt to Recovery: How DebtStoppers Secured a $23,000 Settlement for Ms. G

The Challenge: A Single Mother Overwhelmed by Debt

When Ms. G came to DebtStoppers in January 2025, she was doing everything she could to hold things together.

As a single mother earning approximately $38,000 per year, she was carrying more than $14,000 in unsecured debt. Despite working hard and managing her responsibilities, the debt had become overwhelming and was preventing her from moving forward financially.

The Strategy: A Chapter 7 Fresh Start

After reviewing her situation, our firm recommended a Chapter 7 bankruptcy as the most effective way to give her a true fresh start. We filed her case promptly, and just three months later, Ms. G received a full discharge of her debts.

The Complication: Illegal Post-Discharge Reporting

But the story didn’t end there…

Following her discharge, one of her creditors, a credit union, continued to report the debt as actively owed, even though it had been legally discharged in bankruptcy. This incorrect reporting harmed Ms. G’s credit and undermined the fresh start she was entitled to under the law.

The Resolution: Holding Creditors Accountable

We took action.

DebtStoppers filed suit on Ms. G’s behalf to enforce her rights and hold the creditor accountable. As a result, we recovered over $23,000 in damages on behalf of Ms. G and ensured that her credit report was fully corrected.

A Brighter Financial Future

Today, Ms. G is free from the debt that once held her back, and she has a clean, accurate credit report to support her future.