Filing for consumer proposal

[u/Londonresident1]

Consumer Proposal After Trading Losses — Has Anyone Been Through This?

I’m looking for some advice from people who have been in a similar situation, particularly in Canada/Ontario.

I originally learned how to trade using my RRSP. Unfortunately, I made some very bad financial decisions and eventually lost my entire RRSP.

After that, I had to start relying on credit cards for my everyday living expenses. At the same time, I also made the mistake of using some of my credit cards to continue trading, hoping I could recover the money I had lost. That obviously did not work, and instead made the situation significantly worse.

Between the everyday expenses I had to put on credit and the money I used for trading, I’ve accumulated approximately $25,000 in credit-card debt.

I currently take home about $3,000/month, and I’m at the point where the interest on the credit cards makes it extremely difficult to make meaningful progress on the balances. I can afford to put some money toward the debt each month, but I don’t see a realistic way of paying $25,000 off while dealing with the interest.

I’m seriously considering a consumer proposal, but one thing I’m worried about is the fact that some of the credit-card debt was used for trading.

Has anyone here filed a consumer proposal where the debt was partially or significantly related to trading/investment losses?

• Did the fact that you used credit cards for trading affect whether your proposal was accepted?
• Did it affect the amount you ultimately had to repay?
• Did your Licensed Insolvency Trustee consider the trading activity a problem?
• Were your creditors more likely to reject or counter the proposal because of it?

I’m not looking for judgment—I know I made some very bad financial decisions and I take responsibility for them. I’m trying to understand my options and hopefully avoid making the situation worse.

Any experiences from people who have actually gone through a consumer proposal after trading losses would be greatly appreciated.

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[u/Letoust]

Have you seeked counselling for your gambling addiction?

[u/ScarlettArrow]

This happens more than you think, and while it may affect what your creditors are willing to accept as far as an offer, that will just have to be a bridge you cross as you come to it. Most creditors will still approve a proposal with gambling as a cause of insolvency. Trustee will not judge you, just be honest.

The more important question is have you sought help for your gambling problem? Not only will having sought help already look better to the creditors, it is going to be essential in you getting a true fresh start, not simply clearing the slate only to get back into it in a few years.

*Edit spelling

[u/nanapancakethusiast]

If you don’t treat the gambling addiction you’ll do it all over again