Gambling with Bankruptcy
Gambling can be a serious and addictive behaviour that plays havoc with people’s finances as they chase their losses. More importantly, it can have a really devastating effect on peoples’ lives.
According to government stats, there are a couple of hundred thousand problem gamblers in this country. The situation is becoming more acute as sanctioned gambling grows with casinos, lotteries, racetracks, video lottery terminals and various online outlets.
There are two parts to the gambling problem: the compulsive behaviour itself, and the debts that accumulate from it. We at Richard Killen & Associates Ltd can’t do much for the compulsive behaviour part, but we can usually do an effective job on the debts.
The debts acquired from gambling are generally categorized as ordinary unsecured debts in either a bankruptcy or a proposal. That means they will generally be discharged upon completion of a bankruptcy, or paid off on completion of a proposal.
Even so, if gambling is a major cause of a bankruptcy it can still create obstacles to a discharge. It depends on the seriousness of the gambling and the steps the individual is taking or has taken to get the compulsive problem part under control.
The bankruptcy court tends to look on a gambling-related bankruptcy as something that needs to be corrected. It will want assurances that the problem is under control and the bankrupt is fully committed to reforming his or her behaviour. If the court doesn’t get a warm, fuzzy feeling about a person’s commitment to stopping the addictive behaviour, it might even reflect this in its discharge decision. It can all get a bit messy.
Having said this, a trustee may well be your only way to solve the debt part of problem gambling. There are a few different options available, and a trustee like Richard Killen & Associates Ltd. can tell you all about them.
One thing’s for sure. There’s no need to gamble with your future. Come to Richard Killen & Associates for a free assessment. We can help you get the odds back in your favour.