Are gambling debts considered unsecured in personal bankruptcy?

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In Canada, personal bankruptcy can clear gambling debts as they are considered unsecured debts. This relief allows individuals to move forward financially. However, honesty is crucial—any dishonest actions linked to these debts could leave them unresolved. Always consult a licensed bankruptcy trustee for guidance.

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Question

Are gambling debts discharged in bankruptcy? I’m unsure if my gambling debts will be erased if I file for bankruptcy.

From: Anonymous Question, British Columbia (BC)

Answer

In Canada, gambling debts are typically handled like other unsecured debts when someone files for personal bankruptcy, meaning these debts can often be wiped clean. This can help individuals breathe a sigh of relief and move forward without the financial weight. But hang on—if those gambling debts came about because of some sneaky actions, like lying on forms or acting shady, there’s a chance they might stick with you. So, it’s super important to lay all your debts on the table honestly and chat with a licensed bankruptcy trustee to get advice that suits your situation.

From: Insider Scott

OSB Based Answer

Gambling debts are generally not discharged in bankruptcy. According to the Bankruptcy and Insolvency Act (RSC 1985, c. B-3), specifically Section 178(1)(e), debts incurred from gambling or betting-related activities are considered non-dischargeable and thus remain owing after bankruptcy proceedings.

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

References

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