Russell: Overcoming Gambling Debt

Building a Better Life by Design Not Chance

At 44, Russell (not his real name) began to come to terms with his compulsive gambling, and joined a 12-step program. As he advanced in recovery, he started to take responsibility for his failed first marriage, his first Bankruptcy, and his outstanding Gambling debt.

Russell’s first marriage had ended when he was 36, with a Bankruptcy brought on by his gambling. He not only damaged his credit history, lost his house, and lost his wife – his wife was forced to declare Bankruptcy due to his compulsive gambling which impacted their joint debts.

There were no children in his first marriage, and during their divorce, his wife did not ask for alimony – so, once the Bankruptcy was completed, Russell, who was a mid-level manager, was free to spend his sizable net income as he chose.

In the intervening years, Russell’s income fluctuated between $3,000 and $4,000 net per month but he had nothing to show for it. He lived in a not-so-nice rented apartment, drove an old car, and had ever-increasing debts. All of his disposable income (and more) was spent on gambling.

Russell’s decision to break free and address his gambling problem was a difficult one, and one he took seriously.

As he moved further into recovery, Russell realized that paying off his outstanding debts was an essential step in his recovery. Knowing that he could never reasonably repay his unsecured debts on his own, Russell decided to seek the services of a Bankruptcy Trustee.

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During his initial appointment at David Sklar & Associates, Russell and his Estate Administrator, Cori Naron reviewed his financial situation:

7 Credit Cards Debt $15,900
Unsecured Bank Loan $1,400
Payday Loan $1,200
3 ‘Other’ Unsecured Loans $15,200
Total Unsecured Debt $33,700

 

He had $2,500 left owing on his 8-year-old car and his average income was $2,900 net per month.

Cori presented various options to Russell.

If he decided to file for a second Bankruptcy, he would be looking at a Bankruptcy period of 36 months and his monthly payments during the Bankruptcy would be at least $515 per month. Once his Bankruptcy was complete, his credit history would show his second Bankruptcy for 14 years.

If he decided to file a Consumer Proposal (and it was accepted by his creditors), he would be looking at a 60 month period with monthly payments of approximately $240. Once his Consumer Proposal was successfully completed, his credit history would show a Consumer Proposal for six to seven years.

Without the structure of a Bankruptcy or a Consumer Proposal, Russell felt he would not be able to repay his unsecured debts. After carefully reviewing all of his options, he chose to file a Consumer Proposal. David Sklar & Associates filed the Proposal and presented it to his creditors. His Proposal was accepted by his creditors, and Russell began fulfilling the terms, which included monthly payments of $240 and completion of mandatory financial counselling sessions.

At the time of this writing, Russell has three years left to go on his Proposal, continues to work on his recovery, and is building a brighter future for himself.

To protect our client’s privacy, details of this case have been altered.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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