Case studies
We resolve. You restart.
Case study: Resolving gambling debt
These case studies are not true stories. They do not constitute actual client testimony. However, they are based on experiences observed by our Licensed Insolvency Trustees.Â
These fictional case studies are meant to demonstrate the possible outcomes of a debt solution. In reality, each situation is unique. All individuals struggling with debt should consult a Ginsberg Gingras Licensed Insolvency Trustee to determine the best solution for them, and its effects.
Bankruptcy helps Bernard through a difficult period following the death of his wife
After having made all his payments, Bernard was released from bankruptcy. All his debts were erased, including his car loan. Bernard is very grateful to his LIT.
In summary, Bernard restructured his budget and took the necessary measures to reduce his debt. Following his LIT’s advice, he received help at a specialized centre for his gambling addiction.
Today, Bernard’s financial problems and gambling addiction are in the past. He recovered his financial health and joined a walking group to socialize and occupy his time.
Bernard’s debts before bankruptcy
| Car loan | $22,500 |
| Tax liability | $850 |
| Credit card 1 | $18,700 |
| Credit card 2 | $6,250 |
| Line of credit | $9,250 |
| Overdrawn account balance | $300 |
| Debt total | $57,850 |
Return the car keys
Bernard was no longer up to date on his car payments. Because he was unable to continue monthly payments to his secured creditor, the LIT explained to Bernard that he could return the vehicle to the creditor holding the security. To do so, the LIT would take possession of the vehicle, and the bankruptcy procedure would protect Bernard against his creditors. Bernard was relieved, because this monthly payment was a strain on his budget.
Bernard made 21 monthly deposits of $150 each to settle his debts. The LIT determined this payment schedule based on Bernard’s net income and the calculation table established by the Office of the Superintendent of Bankruptcy Canada (OSB).
As set out in Directive No. 1R3, Bernard also benefited from two budget consultations with his LIT. The first was to discuss:
- Expenses and shopping habits;
- Warning signs of financial difficulty; and
- Obtaining and using credit.
The second consultation was a meeting to determine the budget and non-budget causes of Bernard’s insolvency. During this consultation, Bernard confessed to having a gambling problem. With his consent, the LIT referred Bernard to a specialized gambling and addiction treatment centre, where he received help.
Bernard’s debts after bankruptcy
| Car loan | $0 |
| Tax liability | $0 |
| Credit card 1 | $0 |
| Credit card 2 | $0 |
| Line of credit | $0 |
| Overdrawn account balance | $0 |
| Debt total | $0 |
After having made all his payments, Bernard was released from bankruptcy. All his debts were erased, including his car loan. Bernard is very grateful to his LIT.
In summary, Bernard restructured his budget and took the necessary measures to reduce his debt. Following his LIT’s advice, he received help at a specialized centre for his gambling addiction.
Today, Bernard’s financial problems and gambling addiction are in the past. He recovered his financial health and joined a walking group to socialize and occupy his time.
Help to release you from your debts
Whether or not you have a gambling or spending problem like Bernard, we can help free you from your debts. Together, we will find the best solution for your budget.
At Ginsberg Gingras, you’re always treated with respect and dignity.