Bankruptcy and Gambling Debt

Friday, June 9, 2017 - 21:53

Bankruptcy, Money Management

There are a variety of reasons why consumers get into financial trouble, none of which will exclude them from filing a bankruptcy and subsequently obtaining a discharge. So, if you’re in debt because of gambling, you are still able to file bankruptcy.

For a first-time bankrupt with no surplus income, they will automatically receive a discharge after 9 months (or 21 months if they have surplus income). For a second-time bankrupt, you will receive an automatic discharge after 24 months (or 36 months in the event you have surplus income).

As for gambling debt, there is one stipulation when it comes to being discharged. When the time comes to be discharged from the bankruptcy, the Court may refuse, suspend or grant a conditional discharge if the reason for the indebtedness falls into one of the categories laid out in Section 173(1) of the Bankruptcy and Insolvency Act.

“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;”

If for some reason, you are having an issue with being discharged, your Licensed Insolvency Trustee will be there to help you.

For individuals who are problem gamblers, we strongly recommend other counselling to help address the addiction. Bankruptcy may provide short-term financial relief but cannot resolve the issue of gambling unless it is combined with other treatment.

If you’re struggling with gambling debt, contact us today for a free, no-obligation consultation. We will review your situation and outline all options available to you. 

Latest Posts

Tax Season For the Self-Employed

This year the deadlines for filing your 2017 tax return are as follows: April 30, 2018 for personal returns and June 15, 2018 for self-employed persons. Keep in mind, however, that any tax owing must still be paid by April 30, 2018.

February 15, 2018

Business Concerns

Q and A: Tax Season

With income tax season in full swing, I thought it would be a good time to answer some common questions that I hear regarding government debt and tax returns.

February 10, 2018

Government Debt

Duties of a Bankrupt

Personal bankruptcy laws in Canada are governed by the Bankruptcy & Insolvency Act. Failure to complete your duties will delay your bankruptcy discharge so it is important you fully understand your requirements once you declare bankruptcy.

February 5, 2018