Can Gambling Debts Be Discharged with Bankruptcy?
May 4th, 2022 by A Licensed Insolvency Trustee
Yes, gambling debts can be discharged with bankruptcy. Overwhelming gambling debt is among the most common reasons for bankruptcy, job loss, unexpected expenses, and the demands of raising a family.
Bankruptcy is an insolvency solution. Insolvency is the inability to meet your financial obligations (pay your bills) on time because you lack the funds. Gambling debt often causes chronic insolvency. The situation can become especially stressful because the debtor is ashamed of the reason for his or her debt, and is understandably embarrassed to admit the problem or seek help.
Does this describe your situation? If so, help is available – even if you feel embarrassed!
Gambling – a Common Precursor to Bankruptcy
Gambling debt is, at its heart, overspending debt. The overspending that occurs with gambling has an important characteristic – it is caused by impulsive behaviour. In this regard, gambling debt is similar to many other debt causes such as excessive online shopping, or over-purchasing luxury goods.
Gambling and other overspending can be caused by addiction. It is important to seek counselling if you feel that your gambling is beyond your control.
Keep in mind that there is no need to be ashamed of the situation. Although a great many people enjoy gambling, no one expects their gambling to lead to bankruptcy.
Gambling Debts Overwhelming You? See a Professional
If trying to pay your gambling debts causing you to miss payments on other bills and keeping you up at night, it’s time to remedy the situation. Who should you call? The answer is simple: a Licensed Insolvency Trustee (LIT). LITs are the only professionals who can file the paperwork for your bankruptcy – but LITs do much more than that.
Licensed Insolvency Trustees are specially trained in insolvency solutions. Also, LITs know that most debt – even gambling debt – is not the result of irresponsibility. Their only aim is to find the best solution for both you and your creditors (those you owe).
Special considerations when your bankruptcy is due to gambling debts
You may be concerned because you have heard that gambling debts cannot be resolved using bankruptcy. This is not true. When you describe your situation to an LIT, he or she can advise you on your particular situation.
At the end of your bankruptcy period (nine months in an uncomplicated bankruptcy), a judge will review the matter before granting you a full discharge. The Court must consider whether you might find yourself in the same financial situation – insolvency due to gambling debts – in the future. If there are concerns, the judge may delay your discharge, or set conditions that you must meet before being discharged.
Your Licensed Insolvency Trustee will be there to help if this happens – but your LIT will also help prevent a delayed discharge by preparing you beforehand for what the Court will want: evidence that you are unlikely to require a future bankruptcy due to gambling.
Take the Next Step – Contact a Licensed Insolvency Trustee
Do you need some relief from the burden of your debts? Why wait? Make an appointment with a Licensed Insolvency Trustee in your area today. Your first meeting is confidential, no-obligation, and free of charge. You’ll sleep better knowing that a better financial future is around the corner.
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