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.

~~ ~~

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. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
js_loader