case studies

Case Study 1: Andrei Popescu – A Way Out of the Debt Trap

Andrei Popescu is 27 years old and comes from a small village in Romania. Four years ago, he took the big step to Germany with his wife and their young daughter. They had big dreams, wanted to build a new life and offer their daughter a better future. Since their arrival, the family has lived in a small two-room apartment in Stuttgart, for which they pay €750 in rent. The apartment may be small, but it gives them a feeling of security and hope for a better life.

Andrei quickly found work as a subcontractor for a shipping company . The work was hard, often physically demanding, but he was happy to have been given a chance. But he soon realized that the money was barely enough to make ends meet. Not only did he have to support his family, but he also had to cover the costs of his car and insurance himself - things that were much cheaper in his home country.

As time went by, the financial burdens increased. Bills piled up and Andrei felt increasingly overwhelmed. To cope, he decided to take out a loan. A bank that required little collateral lent him €7,500 – but at 13% interest , which he could hardly keep track of. He was relieved, but his joy did not last long. Soon, new burdens arose: installment payments for a washing machine , a television , a PlayStation 5 and two new iPhones , which he had bought on installments to give his family a more comfortable life. These installments had to be paid every month, in addition to everyday expenses.

It wasn't long before Andrei realized he was losing control of his finances. His salary wasn't enough to make all these payments, and although he asked his boss for a raise, he never got one. The bank wouldn't give him an overdraft, and the bills kept piling up. The exhaustion from work and the constant fear of not having enough money for his family were wearing on his nerves. It felt like the noose was tightening around him.

Then the day he had been dreading came: the bailiff was at his door. Andrei watched helplessly as they checked whether there was anything in his home that could be sold. But there was nothing of value. He felt deeply humiliated and desperate. What should he do? How could he get his family out of this situation?

In his greatest need, Andrei turned to the SIC Debtor Insolvency Center eV . There he met Mr. Seelig , who immediately recognized that Andrei saw no way out. Mr. Seelig listened carefully, understood his worries and encouraged him. He showed him a way out of the seemingly hopeless situation. Together they decided to file for personal insolvency . The court and administrative costs were deferred, so Andrei immediately felt a sense of relief. For the first time in a long time, he had the feeling that something could change.

Thanks to the bankruptcy proceedings, Andrei is now allowed to earn between €2,670 and €2,679.99 per month without having to pay anything back to his creditors. This relief brought him and his family much-needed stability. They are allowed to stay in their apartment , and Andrei was even able to keep his job, as the bankruptcy had no negative impact on his employment.

The future finally looks hopeful again. In three years, Andrei will be debt-free. During this time, he has not only left the burden of debt behind, but also learned important lessons about financial responsibility . He now knows how to manage money better in the future and avoid similar situations. His daughter will grow up in a stable, loving environment, and Andrei and his wife can offer her the life they so desired when they arrived in Germany.

This experience has made Andrei and his family strong. They have learned that there is always a way out, even from the most difficult situations. Today they look to the future with renewed courage and are grateful for the help they received at the right moment.

Andrea M., 36, from Vaihingen – The way out of the debt trap

Andrea M. is 36 years old and lives in Vaihingen. She is a single mother of two children after her partner, with whom she had been together for five years, moved out. Although he is actually obliged to pay maintenance , he doesn't pay a cent. The situation was difficult from the start, but when the financial support from relatives and friends stopped, everything became even more complicated.

The cost of the kindergarten is 250 euros per place , and when both her dryer and her car broke down, Andrea was forced to take out a loan from Media Markt . Thanks to her 36-hour job in retail, she was able to take out the loan, but the monthly installments put additional pressure on her already tight budget.

Andrea still wanted to buy good clothes for her children and treat herself to something too. So she used services like Klarna installment payments and PayPal to be able to afford the things. But in the background, the mountain of debt was growing steadily. The debt collection letters piled up, and although she had repeatedly made payment agreements and paid her installments in an exemplary manner, the financial burden eventually became too great.

Sleepless nights and extreme financial burden

The situation became unbearable for Andrea. Sleepless nights , constant stress and the fear of no longer being able to provide the children with the basic necessities dominated her everyday life. The pressure of the financial burden was so great that she could hardly concentrate on her work and her family. She felt like everything was slipping away from her and the exhaustion caused by the debt was getting worse and worse.

The bailiff knocks on the door

One day the bailiff showed up at the door. He took the last items that could be seized. Andrea was shocked, but that was not the end. A second bailiff visit followed, but there was nothing left to seize. Andrea had to make an affidavit that she no longer owned anything.

The turning point: help from debt counseling

In her desperation, she turned to the SCC debt counseling service in Echterdingen . There she finally found psychological, moral and financial support. With the help of the counselors, she filed for bankruptcy , which paved her way out of the debt trap after a long struggle.

Debt-free and a fresh start

After three years, Andrea finally received her debt relief . She is now debt-free and has learned through this difficult time how to handle money properly . The bankruptcy was a challenge, but she emerged from it stronger. Today she has her finances under control again, can provide her children with everything they need and feels happy and relieved .