Gambling Debt And Chapter 7

1. Gambling debt may be secured or unsecured. If you took out personal loans to gamble, that debt is unsecured. It can be discharged through either Chapter 7 or Chapter 13. If you borrowed against the equity in your home, car, or other valuable asset, the gambling debt is secured.
2. A Chapter 7 bankruptcy filing attempts to discharge all of your debt where possible, but due to the nature of gambling debts, this can be entirely difficult. A Chapter 13 bankruptcy merely reduces your debt and schedules a doable repayment plan over the course of three-to-five years.

Let’s face it — sometimes people do not make the best decisions and end up gambling at the casinos or elsewhere a little more than they should. Sometimes, those gambling debts add up and then you are facing bankruptcy.

For debts that are unrelated to gambling, bankruptcy can help. Depending on which chapter you choose — Chapter 7 or Chapter 13 — you may be able to keep your home, your car, or other assets. Then you pay what you can to your unsecured creditors and the courts will discharge the rest of your debt,

The problem is that gambling debts are a little different — at least in the eyes of the court. And there is no way to get around disclosing them to the court. Gambling losses incurred during one year prior to the bankruptcy filing must be disclosed to the court in the Statement of Financial Affairs that is filed with the bankruptcy court. The bankruptcy trustee appointed over your case or another creditors may object to the discharge (the wiping away) of gambling debts on the grounds that when you incurred the debt you had no real intention of repaying the debt and now you are just using bankruptcy as a way out.

Debts that are incurred under false pretenses of by fraud are nondischargeable under section 523 of the Bankruptcy Code. On the other hand, proving fraud and false pretenses in court is harder than you think and a trustee or creditor might not have the stomach for the fight. So here are some points to remember if you have gambling debts and think bankruptcy might be in your future:

Gambling Debt And Chapter 71

In a Chapter 7 bankruptcy, you can generally discharge unsecured debts, like credit card debt, medical debt, and more. When it comes to gambling debt, it can be complicated to determine whether the debt can be discharged. Debts incurred due to gambling are technically dischargeable in bankruptcy, but discharge comes with some complications. Gambling Debt and Chapter 7 Bankruptcy I think I may need to declare bankruptsy in the near future, and was wondering how cash advances from credit cards at local casinos will be dealt with? They were taken out during a time when my financial situation was better, like 1-2 years ago.

1. If large credit card advances to casinos are made right before you file for bankruptcy, the court may decide the debts were not incurred with the intention of paying them back and the debts may not be discharged.
2. if you sign a marker for chips, which usually has on it somewhere a statement that you have sufficient funds to cover to the chips, and in reality you do not the funds to cover, the court may find that you borrowed deceptively and deny your discharge.
3. If you realize your gambling is out of control and you have stopped, maybe attended a few Gamblers Anonymous meetings, and tried to make some payments on it, then you will have a better chance at showing the court that you had the intention to repay the debts.

If you find yourself in a difficult situation with your gambling debts, don’t make it worse. Call our offices and speak to a qualified attorney that can explain your options and help you approach your problems and put them in the best light possible.

Gambling Debt And Chapter 72

Bankruptcy and gambling debt. This issue has come to the forefront. Gambling has been expanding rapidly in South Florida. Horse racing, dog racing, jai alai, slots, blackjack, and poker is everywhere. As more people are gambling, they often turn to a bankruptcy lawyer for help. I recently met someone who came to me in tears. This person revealed a big problem. Gambling had taken control and the debt was overwhelming. This person believed gambling could be a winning hand. Going to the casino 6 days a week, for seven hours a day was the routine. Friends could not stop the gambling. This person just tuned them out. Then rock bottom arrived. Gambling debts could not be paid. A 2nd mortgage on the house was taken out to pay gambling debts. Finally, this person admitted the addiction and sought help. The question I was asked is a common one bankruptcy attorneys hear. Can gambling debt be discharged in bankruptcy? The answer is maybe, but there are exceptions. There is no rule that states bankruptcy debt cannot be discharged in bankruptcy. The key is the trustee and the bankruptcy court could question your intent. Any debt incurred under false pretenses cannot be discharged in bankruptcy. It will come down to the question of your intent when you incurred the bankruptcy debt. Did you believe you could repay the debt? If so, it should be dischargeable. Like the person that came to see me, if you quit gambling, sought help to stop, and made some payments on the debt in good faith, the court should believe you did not intend to commit fraud. Another key question, when did you incur the gambling debt? Keep in mind, if you ran this debt up a short time before filing bankruptcy, it will appear you ran up gambling bills, then filed bankruptcy to evade the debt. Another question is, what chapter of bankruptcy should be filed? There are quite a few factors that go into this decision. Deciding whether to file a Chapter 7 bankruptcy or Chapter 13 bankruptcy will depend on your assets and income. An experienced bankruptcy attorney can assist you with this important decision. One more item to consider. Like the person who came to see me, if you took out a loan on your home or car to support a gambling habit, than there is a lien on that property. This makes it a secured debt, rather than an unsecured debt. Considering whether you want to keep or surrender that property is another factor in deciding whether Chapter 7 or Chapter 13 bankruptcy is right for you. If you have gambling debt and want to discuss your options, contact Broward County bankruptcy lawyer Howard Butler. The initial consultation is always free. Contact the Butler Law Firm, P.A. at 954-797-5338 or visit www.browardcountybankruptcy.com. Relief from your gambling debts could be a phone call away. Take charge of your financial future today.