When any of us, whether in person or online, head to the racetrack or the casino, we hope we’re going to win. And when you do win, it feels pretty good. Yet the harsh reality of gambling is that it’s mostly only the bookmakers who win. If we keep trying to win, we can ignore the risks associated with gambling, and debts can quickly rack up and threaten livelihoods. Gambling debt can be overwhelming, leading many to seek ways to manage or potentially have these debts forgiven. The good news is that at Spergel, aka ‘the get rid of debt’ people can help you to take control of your gambling debts. In Canada, while there’s no direct method labelled as ‘gambling debt forgiveness’, there are several strategies you can adopt to address and manage gambling debts effectively. In this article, we share how to secure gambling debt forgiveness in Canada if gambling has led you into debt.
What is gambling debt?
Gambling debt is any debt accumulated from wagering activities, including betting on sports, casino games, or online gambling platforms. These debts might involve money owed to casinos, borrowed from friends and family, or credit card debts and unsecured loan debts used for gambling.
How to secure gambling debt forgiveness in Canada
There are a number of steps to take if you are concerned about your gambling debts.
Acknowledge the issue
The first step to taking control of your gambling debt is acceptance. The vast majority of us never intend to find ourselves in gambling debt – it is, after all, an addiction and can cause us to become reckless in the pursuit of a win. Although it is all too easy to bury our heads in the sand, the best way to begin taking control of gambling debt is acknowledging the problem and recognizing the impact of gambling on your financial health. For help with moving forward from your gambling addiction, we recommend consulting one of the following expert support services that offer specialist advice:
These services can help you to recognize the signs of wanting to gamble so that you can prevent yourself from making your financial situation any worse.
Speak to a Licensed Insolvency Trustee
Consulting with a professional, like a Licensed Insolvency Trustee (LIT), can provide you with expert advice tailored to your situation. Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief, and they are best placed to help you understand how to secure gambling debt forgiveness in Canada. At Spergel, our Licensed Insolvency Trustees will help you to understand your legal options and the implications of different debt relief strategies.
Apply for exclusion from gambling
Just as those with shopping addictions might throw out their credit cards when they’ve taken their spending too far, gamblers should apply for exclusion and cancel any memberships to gambling services. You can begin by informing gambling establishments and casinos that you want to end your membership – you may even want to inform them that you have a gambling problem so they can help to make it increasingly difficult for you to gamble again. Applying for exclusion means that you will be unable to re-enter a gambling establishment for a set period of time.
Explore your debt relief options
No matter how bad you might think your financial circumstances are, don’t panic – there is always a solution to any amount of debt. In Canada, there are a number of options available to help you take control of your situation. Here’s how to secure gambling debt forgiveness in Canada:
- Credit counselling – the longer gambling debts go unpaid, the more interest they are likely to accrue. If your debts are less than $10,000, and you only have a couple of creditors, you might find a credit counselling service helpful. Credit counsellors can provide budgeting assistance, debt management plans, and can sometimes even attempt to negotiate with your creditors on your behalf to reduce the interest you owe.
- Consumer proposal – a consumer proposal is a legal form of debt relief, administered by a Licensed Insolvency Trustee. It is a formal negotiation with creditors that can reduce your unsecured debts by up to 80%. Advantages of a consumer proposal include the ability to keep your assets while receiving protection from your creditors. At Spergel, we have a 99% acceptance rate on any consumer proposals we file.
- Bankruptcy – if you think you need a financial reset, bankruptcy can eliminate your unsecured debts to give you a fresh start. Bankruptcy is the process of assigning any non-exempt assets you may have over to your Licensed Insolvency Trustee in exchange for this clearance. Your assets will then be sold with any proceeds going towards the repayment of your creditors. Contrary to popular belief, bankruptcy does not leave you with nothing – each Province has a list of exemptions, meaning you can keep things like a car under a certain value threshold.
How does debt relief affect your credit score?
Depending on the debt relief strategy you opt for, debt consolidation, consumer proposals, and bankruptcy will each have an impact on your credit score. That said, if you are in need of debt relief, your credit score likely isn’t as strong as it could be anyway. By taking the required steps to reduce or eliminate your debt, you can begin your journey to a fresh financial future. At Spergel, we will help you to rebuild your credit score by sharing tips and advice accordingly.
How to secure gambling debt forgiveness in Canada: FAQs
Here are some of the most common questions we are asked about securing gambling debt forgiveness in Canada.
Does Canada have a debt forgiveness program?
Canada doesn’t have a generalized debt forgiveness program, but it offers several debt relief options for those struggling with insolvency. The most common options include consumer proposals and bankruptcy filings, both of which are formal processes overseen by a Licensed Insolvency Trustee. A consumer proposal allows debtors to negotiate a settlement with their creditors to pay a portion of the debts owed over a longer period, while bankruptcy typically involves liquidating assets to pay off creditors and discharge most types of debts. These measures are designed to provide a fresh financial start rather than outright debt forgiveness. Additionally, there are specific forgiveness programs for certain types of debts, such as student loans under particular conditions. Individuals facing financial difficulties should consult with a Licensed Insolvency Trustee to understand the most appropriate options for their circumstances.
How do I get my debt written off in Canada?
In Canada, getting your debt written off involves formal processes regulated under the Bankruptcy and Insolvency Act. The most common methods are filing for bankruptcy or proposing a consumer proposal through a Licensed Insolvency Trustee. Filing for bankruptcy may lead to the liquidation of your assets to pay creditors and the eventual discharge of most debts, offering a fresh financial start. Alternatively, a consumer proposal allows you to negotiate a plan to repay creditors a portion of what is owed over an extended period, with the remaining debt being written off upon completion of the agreed terms. Both options impact your credit score but can provide significant relief from overwhelming debt. It’s advisable to consult with an experienced Licensed Insolvency Trustee who can guide you through these processes and help determine the best path based on your individual financial situation.
Are gambling debts legally enforceable?
In Canada, whether gambling debts are legally enforceable or not depends on the nature and origin of the debt. Generally, gambling debts incurred through licensed and regulated activities, such as casinos or online gambling platforms that are legally recognized in Canada, are enforceable. This means if you borrow money to gamble legally, the creditor has the right to pursue repayment through legal channels. If, however, the gambling activity is not authorized or regulated (such as informal bets or gambling at unlicensed venues), the debts are typically considered unenforceable in court. It’s important to be aware of the legal status of the gambling activities involved before entering into any debt agreements related to gambling. For more detailed advice, consulting a legal expert or Licensed Insolvency Trustee is recommended to understand the specific implications and enforceability of gambling debts in your particular situation.
What happens if you don’t pay debt in Ontario?
If you don’t pay your debts in Ontario, several consequences can follow, escalating over time. Initially, creditors may contact you directly to request payment. If the debt remains unpaid, they might involve a collection agency, which will intensify efforts to recover the money through repeated calls and letters. If these attempts fail, creditors can take legal action, leading to a lawsuit. If the court rules against you, it may issue a judgement that allows creditors to garnish your wages, seize bank accounts, or place a lien on your property. Additionally, unpaid debts will negatively impact your credit score, making it difficult to obtain loans, mortgages, or other forms of credit in the future. To avoid these severe consequences, it’s advisable to seek guidance from a Licensed Insolvency Trustee who can explore debt relief options such as debt management plans, consumer proposals, or bankruptcy.
While direct ‘forgiveness’ of gambling debts is not a typical outcome, employing strategies such as consumer proposals or bankruptcy can help manage and effectively reduce the burden. Acknowledging the problem, seeking professional advice, and addressing any underlying issues related to gambling habits are critical steps towards financial recovery and stability. At Spergel, our Licensed Insolvency Trustees are experienced in handling all types of debt issues, including those arising from gambling. Book a free consultation today to discuss your situation confidentially and explore your options towards achieving financial independence, free from judgement.