How Structured Debt Management Transformed a Bangalore Entrepreneur’s Pandemic Crisis

Challenge

An entrepreneur (name confidentiality) based in Bangalore, faced a severe financial downturn when the COVID-19 pandemic disrupted his business operations in 2020. With revenues plummeting, he turned to multiple forms of credit from banks, NBFCs, and app-based lenders to sustain his business and manage obligations.

As the slowdown deepened, his primary source of income collapsed, leaving him unable to meet EMI commitments. In an effort to avoid default, he borrowed from friends, creating a debt spiral. With 17 active creditors and a total debt burden of ₹40.23 lakhs, his monthly EMI obligations reached a staggering ₹2.9 lakhs, far exceeding his repayment capacity.

The mounting debt, harassment calls from recovery agents, and growing legal notices left him mentally, emotionally, and financially drained. It was evident that traditional repayment methods were unsustainable, and he needed structured, professional intervention.

Solution

Structured Debt Management Plan (DMP) 

Recognizing the urgency of professional assistance, he enrolled for a Debt Management Plan (DMP) in January 2023. SingleDebt’s legal and paralegal experts worked with him to stabilize his situation and provide both legal security and pragmatic financial solutions focused on complete repayment.

Our interventions included:

• Creditor Communication & Legal Shield: Immediately, all creditor communication, calls, and collection agency visits were redirected to our legal and paralegal teams. Harassment calls reduced significantly as legal notices were addressed formally, providing instant relief from stress.
• Affordable Repayment Restructuring: We meticulously analyzed his remaining income and expenses to establish a single, affordable monthly repayment amount he could manage sustainably. This was the foundation of his Debt Management Plan.
• Negotiation for Favorable Terms: Our team engaged all 17 creditors (banks, NBFCs, and apps) to formally accept the new, restructured repayment schedule. The focus was on securing favorable interest rates and preventing further legal escalation while committing to the full principal repayment.
• Streamlined Financial Management: His repayment obligations were realigned with his actual capacity. From an initial ₹2.9 lakhs EMI burden, the DMP allowed him to save nearly ₹2.48 lakhs per month, bringing mental stability and necessary financial breathing space.

   

Results & Achievements

• Active Repayment & Compliance: 17 out of 17 creditors have been officially included in the structured Debt Management Plan.
• EMI Reduction: The client’s monthly outflow was drastically reduced, making the journey to a debt free life manageable.
• Harassment Eliminated: Aggressive recovery calls and harassment have drastically minimized since onboarding, restoring mental peace.
• Legal Protection: Continuous representation and formal communication ensure the client is protected, and all actions are compliant with due process.
• Financial Stability: The structured plan has restored balance, enabling him to meet essential expenses while strategically and consistently repaying his total debt.

   

Client Reflection

““When everything seemed overwhelming—my business struggling, income gone, and creditors calling day and night—SingleDebt became my lifeline. Their legal support, negotiation strategies, and structured plan helped me feel in control again. I am now confidently following the plan and finally see a way forward to fully repaying all my loans.”
— Client Review

Key Takeaways

• Debt Management is a Lifeline: For complex, high-volume debt, a structured DMP allows for full repayment without the mental or financial strain of high EMIs.
• Legal Intervention Provides Immediate Relief: Dedicated paralegal support is critical to stopping harassment and regaining peace of mind.
• Affordable Repayment is Key: Restructuring debt to fit actual income capacity is the only sustainable path to complete financial recovery.
• Consistency Builds Trust: Following the Debt Management Plan consistently helps repair financial credibility over time.