Gambling Debts and Bankruptcy
It’s no secret that financial woes can befall anyone, regardless of the reasons behind their predicament. However, when it comes to individuals who have accrued debts due to gambling, one question frequently arises – Can I Go Bankrupt If My Debts Are The Result of Gambling? To find the answer, we delve into the intricacies of bankruptcy laws, the implications of gambling debts, and the potential options you have to regain your financial footing.
Understanding Bankruptcy
Bankruptcy isn’t an exclusive club; anyone can file for it when their financial circumstances take a turn for the worse. Whether it’s your first time declaring bankruptcy or not, the process remains uniform.
First-time bankrupt individuals without surplus income can anticipate a discharge within nine months. However, this timeline extends to 21 months for those with surplus income.
Repeat bankrupt individuals can expect their discharge to take place after 24 months, or 36 months if they have surplus income.
Bankruptcy is governed by the Bankruptcy and Insolvency Act, which determines the conditions for discharge.
Gambling Debts and Bankruptcy
The Bankruptcy and Insolvency Act has a specific section dedicated to individuals who have amassed debts due to gambling. As stated in Section 173 (1e):
“The bankrupt has brought on or contributed to the bankruptcy by rash and hazardous speculations, by unjustifiable extravagance in living, by gambling or by culpable neglect of the bankrupt’s business affairs.”
Although this might seem worrisome, it’s important to note that despite the reason for your bankruptcy, including gambling, you should still be discharged from those debts.
The Importance of Counseling
For those struggling with problem gambling, it’s crucial to seek help beyond financial solutions. Bankruptcy might offer temporary relief, but it doesn’t address the root cause of the issue – the addiction itself. Therefore, counselling or other forms of treatment are strongly advised alongside any financial actions taken.
The Role of a Licensed Insolvency Trustee
When it comes to navigating the complex waters of bankruptcy, a Licensed Insolvency Trustee can be your guide. These professionals are experienced in dealing with major financial stress and can provide the assistance you need.
With a Licensed Insolvency Trustee:
- You’re not just another case on the conveyor belt; you receive personalized attention.
- You can expect prompt and effective solutions to your issues from a supportive and experienced team.
- They will review all your debt solution options, including filing a consumer proposal or personal bankruptcy.
Filing a Consumer Proposal or Personal Bankruptcy
Upon filing a consumer proposal or personal bankruptcy, the Licensed Insolvency Trustee will deal directly with your creditors. This means that your unsecured creditors are required to cease their communication or legal proceedings against you.
Consultation
Licensed Insolvency Trustees usually offer free consultations to review your financial situation and discuss practical debt resolution options. You can contact them to discuss your situation over the phone, a video chat, or in-person at various locations.
In summary, yes, you can go bankrupt if your debts are the result of gambling. However, it’s important to remember that bankruptcy is a complex process that requires careful consideration and professional guidance. Moreover, addressing the underlying issue of gambling addiction is a critical part of the recovery process.
