can you have gambling debt discharged in Chapter 7 cases?

[storesstores]

can you have gambling debt discharged in Chapter 7 cases?

[Logan]

Yes, the presumption is you gambled to win not lose...

[lrprn]

can you have gambling debt discharged in Chapter 7 cases?

Yes.

It's best that at least 70 days have passed before filing if you borrowed the money from credit cards. It helps if you have good documentation that shows how much you borrowed to gamble and when. It also helps if you can show the trustee that you have stopped gambling and are attending gamblers anonymous or some other such group.

We have several current gamblers here waiiting through their cases. Hopefully one of them will chime in here.

Also, do a search here in the forum for 'gambling' and 'gambler'. You'll find you are not alone filing because of big gambling debts. The trustees around the country are very used to seeing it.

[storesstores]

I was just asking because my lawyers paralegal told me that gambling debts are NOT dischargeable.

The lawyer and paralegal however, do NOT know that a small portion of my debt is from gambling...

I am just curious just in case.

I do NOT think that it will be detected though unless they start scrutinizing my line items on some past bank statements...

[lrprn]

I was just asking because my lawyers paralegal told me that gambling debts are NOT dischargeable.

One more reason that depending on a paralegal for legal advice (which by law they are not allowed to give) is a bad idea.

The lawyer and paralegal however, do NOT know that a small portion of my debt is from gambling...

Stores, you are holding back information about your finances from your lawyer - that is a HUGE mistake.

Your lawyer can't give you the best legal advice if you don't come clean about all your finances, including the parts of your debt that you may not be very proud of. TELL YOUR LAWYER THE TRUTH! Why are you holding information back???

[Lindsay]

I think the paralegal is wrong. We know two people from our neighborhood who recently filed and they said it was due to gambling debts. They are actually brothers who liked to go to the casino together. I guess they didn't do too well.

You should really talk to your lawyer about this. They've pretty much heard it all and what you tell them will be confidential. That way the lawyer will tell you what to say should something come up. You don't want your lawyer to be suprised. I think many people who have to file bankruptcy got into trouble by doing some not so smart things. It's already humbling to be bankrupt, you may as well just come clean with the lawyer. If you lost alot of money gambling, you certainly won't be the first. We live in an area where there are Indian owned casinos and one man shot himself right on the casino floor because he was so deep in debt due to gambling losses. I'm sure there are plenty who went into debt that way.

I thought of gambling in the last few months. I really hate the slots and casino games; they give me a horrible headache with all those noises and flashing lights. But I do like to occasionally bet on the horses. Due to having tight finances and high minimum payments on cards for years, I only usually wager on the Kentucky Derby and Breeder's Cup now. My sister and I each kick in $50 on those days and make all sorts of fun $2 bets. Fortunately for me, although I love horse racing, I've always been able to take it or leave and I watch most races without wagering on them just to enjoy the sport. The thought occurred to me when I knew I was hopeless that I should take my last few $1000's and gamble it on some Pick 6 bets. Either I'd go down completely or I'd make enough to cover a few more months of expenses. I decided against it, LOL. But I'm sure alot of people do gamble alot once their finances get real bad because thats probably the only way they may get lucky or have any hope.

I wouldn't worry so much and just ask to talk directly to the lawyer because it sounds like the paralegal really doesn't know the laws.

[HHM]

If the gambling debt is related to direct casino markers, then no, it cannot be discharged. If the debt is cash advances, etc used for gambling, that can be discharged so long as you let enough time pass between the time you incurred the charges, and the time you file BK (about 6 months depending on amount).