Gambling Debt And Chapter 7
Filing Bankruptcy due to a Gambling Problem
The high interest rate that the credit card companies charge in combination with the fact that gambling leads to further debt, would put the debtor in a position to never get out of debt. By taking advantage of the lifesaver that chapter 7 provides, a person with gambling debt can obtain a fresh start. The real issue is recidivism. You may wonder if gambling debts can be discharged in Chapter 7 bankruptcy. The good news is that they likely can be. However, you might get some pushback from the bankruptcy trustee assigned to your case. It is so unfortunate that you were not properly educated about bankruptcy law and gambling debts before you went through the bother of filing chapter 7. The bankruptcy trustee has no authority to make any determination about whether or not your debts get discharged. So appealing to the trustee with your sad story is a waste of time.
Gambling is a serious addiction that affects many people. Whether you are gambling on the internet or in the casino, this issue can lead to significant financial loss. In fact, many people who gamble on a regular basis eventually accumulate more debt than they can ever afford to pay. In these cases, filing bankruptcy can provide you with the relief you need to help you get out of debt and back on your feet.
Gambling Debt And Chapter 71
Casino Marker Debts
Gambling debts can come in many forms. One of the main sources of gambling debt is casino marker debt. A casino marker is credit loaned to a gambler, usually in cases where the gambler is out of money or is hoping to make a profit without dipping into his or her own funds. Casino markers may be tied to a credit line with the casino, or the gambler may be asked to submit a post-dated check. A marker may also be tied to a credit card or borrowed against funds on deposit.
A gambler who applies for and obtains a casino marker rarely plans to spend more than he or she can afford to repay. The gambler may plan to stop at a certain limit, or the gambler may think that if he or she continues to spend, good luck will eventually come along. Unfortunately, in many cases, the gambler’s spending gets out of control, and he or she ends up owing more to the casino than expected, leading to mountains of debt. If this situation applies to you, it’s time to turn to Ted Machi and his team to see if bankruptcy is the right option for you.
Chapter 13 Gambling Debt Relief
One type of bankruptcy that our team can help you file is chapter 13 bankruptcy. Chapter 13 bankruptcy can help you prevent repossession and/or foreclosure. In Chapter 13 bankruptcy, you are required to repay both secured and unsecured debts. However, you may not be required to repay all of your unsecured debts in full. Instead, you will make payments toward your debts based on a three- or five-year payment plan that our team at Ted Machi & Associates will help you work out with the court. The specifics of this payment plan will depend on your disposable income and the amounts of your outstanding debts.
Chapter 7 Gambling Debt Forgiveness
Chapter 7 bankruptcy is another bankruptcy option that can eliminate your gambling debts and help you take a step in the right direction financially. Unlike chapter 13 bankruptcy, chapter 7 bankruptcy does not involve a payment plan. In addition, this type of bankruptcy typically allows you to discharge a larger portion of your debts, which means that you will no longer be responsible for paying them.
Chapter 7 bankruptcy – also known as liquidation – requires you to pass a means test. This test is designed to determine whether your income is low enough for you to qualify for this type of bankruptcy. If you pass the means test and you choose to proceed with a chapter 7 bankruptcy, you may have to turn over non-exempt assets to the court to repay as much as your debt as possible, but in most cases, your home, vehicles and personal items will be protected. Any remaining debts will then be discharged by the court, and the case will be closed.
At Ted Machi & Associates, we’re experts with both chapter 13 and chapter 7 bankruptcy. We can help you determine which option is better for you and guide you through the process of filing for bankruptcy
Nondischargeable Bankruptcy Debts
Some debts cannot be discharged by either type of bankruptcy. These are known as “nondischargeable debts.” Any gambling debts that you did not incur legally cannot be eliminated in bankruptcy. For example, if you have incurred debt while participating in illegal gambling, you won’t be able to eliminate these debts by filing for bankruptcy.
Debts may also be nondischargeable if any type of criminal activity, deception, or fraud was involved when you incurred the debt. For example, if there’s evidence that you deliberately racked up large amounts of debt right before filing for bankruptcy, or that you lied about your identity in order to obtain credit, you will likely have trouble discharging accrued debts.
If you have accumulated more gambling debt than you can afford to pay, bankruptcy may be your best option to get out of debt and back on the right track. To find out if you are a good candidate for bankruptcy, or to begin the filing process, contact Ted Machi & Associates today.
Resources for Gambling Problems
If you have a gambling problem, there are resources available to help you:
Gambling Debt And Chapter 7 Quizlet
Gamblers Anonymous Fort Worth – (817) 371-0624
Gamblers Anonymous Dallas – (214) 675-0939
National Council on Problem Gambling – (800) 522-4700
In this week of March Madness, we are addressing a common issue related to sports… gambling debt! Many of us travel to Las Vegas and bet on sports or play games in Native American casinos here in California. Here in the Inland Empire, places like San Manuel Indian Bingo and Casino, Pala Casino Resort and Spa, Morongo Casino, Resort and Spa, and Pechanga Resort and Casino are all very popular places to visit, relax, have fun, and, unfortunately, rack up gambling debt. Whether you lose money, owe money directly to the casinos from credit lines, or if you used credit to play in the casinos, you should be able to discharge the debt with a bankruptcy filing (keep reading if you want to know when the gambling debt is not able to be discharged). Gambling debt is considered one of the unsecured debts which can be discharged in a Chapter 7 bankruptcy filing. This means that if you qualify for Chapter 7 bankruptcy, you can have the gambling debt totally cleared. But this does not mean that you should go ahead and use all of your credit to gamble as much as you can and then just file for Chapter 7 bankruptcy after you’ve lost all your credit lines. The reason is explained below.
Gambling Debt And Chapter 72
It is not legal to pre-meditate a bankruptcy. You should not plan to file for bankruptcy as a strategy to get out of debt after gambling because this is not allowed. A bankruptcy court and bankruptcy trustee can deem your debt non-dischargeable or unable to be discharged if you have signs of pre-meditating a bankruptcy. You may think that this is difficult to prove, but, actually, all that the bankruptcy trustee needs to do is examine your most recent spending in the past 90 days to see if there was any spending that looks like it was planned spending with a bankruptcy filing planned ahead of time. For example, if you bought a new TV last month and also racked up a $10,000 gambling debt, and are hoping to file bankruptcy today, it would be fairly obvious to the bankruptcy court that you had a bankruptcy planned all along because the debt was incurred so close to when you filed. These recent debts may be deemed unable to be discharged.
Remember, bankruptcy trustees are just people like you. Your file will be examined by a normal person who can spot these types of spending patterns and will not let you get away with planned spending for a pre-meditated bankruptcy. Otherwise, if you have genuine gambling debt and you are unable to pay it in the time allotted for you to repay the debt, a bankruptcy should be able to discharge the debt.
Someone out there is probably also thinking that once the bankruptcy is filed or discharged, you might want to go ahead and start gambling again immediately after the debt is discharged. You really shouldn’t put yourself in this difficult situation because you won’t be able to file a Chapter 7 bankruptcy again for 8 years. Now you are stuck with the debt until you can file again 8 years from now. After a bankruptcy, your main focus should be on building up your savings and improving your credit scores. Going right back to gambling after a bankruptcy can be even more risky because you don’t have the opportunity to file another bankruptcy to clear the debt. You will most likely face a lawsuit and collections activities.
If you are riddled with gambling debt or any other type of debt, contact Bankruptcy Law Professionals at 855 257-7671 to schedule a free consultation.
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