Financial counselling supports guide Stefan through debt to stability

August 6, 2026

At 73, Stefan never imagined he’d find himself alone, in debt and facing homelessness. As the owner of a small handyman business, Stefan was a well known figure in Sydney’s close-knit Croatian community – respected for his confidence, independence and generous spirit. Then came an ankle injury, a divorce, an eviction notice, and a looming $40,000 debt and Stefan’s life took a frightening turn.

“When I first met Stefan, what struck me was his strong work ethic. He took great pride in himself and what he had achieved with his small business,” recalls Financial Counsellor Alessandra.

But when a workplace ankle injury left him unable to perform the physical tasks his job demanded – like climbing ladders – his sense of identity and purpose began to unravel. Determined, he tried to keep working but eventually had to accept that his body wouldn’t allow it. With no other income, Stefan became fully reliant on the age pension. After his divorce was finalised and his wife moved out, he was left to shoulder a $700 weekly rent alone. It simply wasn’t possible, and Stefan was handed an eviction notice.

“Stefan’s debts were a mix of business debts and tax debts, and they were complex,” explains Alessandra. “With business debts, you are ineligible to apply for debt waiver requests.”

As part of our holistic financial counselling process, Alessandra worked with Stefan to review his income, budget and debts. Together, they looked at every option. With no remaining assets or income to support a repayment plan, bankruptcy became a doorway, not a defeat. “At first, Stefan was very reluctant to declare bankruptcy because of the stigma associated with it, but over many sessions he made up his own mind that this was his way out of further financial stress and homelessness,” explains Alessandra.

“Once we lodged the bankruptcy paperwork online, I was with him for over two and a half hours,” Alessandra says. “He smiled and kept thanking me. It brought him a deep sense of peace.”

With the bankruptcy in place, the endless calls from creditors stopped. And some more good news followed – his application for social housing was approved. Stefan now has a safe, affordable place to live and a renewed sense of dignity.

His gratitude was overwhelming.

“He invited me and another Case Worker to a Croatian restaurant to celebrate,” Alessandra says, smiling. “Of course, we had to politely decline, but instead, he brought me a big box of nougat. He was so generous.”

Through all the hardship, Stefan’s strength never wavered. A man who held onto his independence as long as he could, finally found peace in asking for help. 

 Stefan’s story is a testament to the power of agencies working together. The partnership between CatholicCare and The Northern Centre, which helped secure social housing for Stefan, shows the impact that’s possible when organisations work together to support individuals with dignity, care, and collaboration. 

 For Stefan, it’s a fresh start. And at 73, a new beginning is nothing short of a triumph.