Bankruptcy Gambling Losses

Get Out Of Gambling Debt & Casino Markers

Have some big losses at an Atlantic City casino contributed to the financial situation you find yourself in that has you considering bankruptcy? 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. Yes, you do need to list gambling winnings and losses on your bankruptcy. Any winnings within the last six months will also co. That means that anything that works against other contractual debts would work against gambling debts, and one such thing is Chapter 7 bankruptcy: contract-based debts, including gambling debts, can be discharged in Chapter 7. So broadly speaking, the answer is “Yes–gambling debts are dischargeable in Chapter 7.”. Preventing gambling losses from turning into debts keeps them from affecting the financial status of the gambler. Many people say that avoiding gambling in the first place is the best approach. People who cannot resist a wager should be responsible with their betting to avoid accumulating gambling debt. With the proliferation of Casinos in Pennsylvania, it is inevitable that gambling losses will result in some consumers filing bankruptcy to discharge those losses. The general rule in bankruptcy law in Pennsylvania is that you can discharge (wipe out) gambling debts in bankruptcy.

The top reasons for filing for bankruptcy are insurmountable medical bills and student loan debt. However, bankruptcy can be used to discharge, reduce, or otherwise manage all forms of debt, including gambling debt. Oftentimes, these debts are borrowed from credit cards at high interest rate cash advance, or through the casino using a marker. People who have a gambling addiction can find themselves with nothing in their bank accounts.

If casino markers are used by a gambler, massive amounts of money might actually be owed directly to a specific casino; a casino marker is essentially a special line of credit established between a casino and an individual gambler. A gambler can lose it all in one stroke of bad luck. No matter the reasons behind gambling-related debt, it is important not to feel embarrassed and explore the ways bankruptcy can help.

Seeking Counseling Can Help Your Filing

Many bankruptcy filings are paired with an agreement that the bankrupt filer will undergo some sort of course about safe spending habits. In cases of gambling debt and bankruptcy, gambler’s rehabilitation programs to curb gambling addiction might serve a similar function. If a gambler takes the initiative and addresses his or her own gambling problem prior to filing for bankruptcy, it could potentially reduce the amount of debt needed to be discharged through bankruptcy.

The actual bankruptcy filing process does not change for if a person files due to gambling debt, regardless of whether it was a casino marker debt, cash advance, or other unsecured transaction. 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. Chapter 13 is often easier to negotiate with casinos that create IOUs through casino markers.

New York City Debt Lawyers

Bankruptcy Gambling Losses Statute Of Limitations

The Law Office of Simon Goldenberg, PLLC offers legal assistance for clients that need to find debt relief, including those who have fallen into considerable gambling debt. Talk to our New York City debt attorneys about bankruptcy and other alternatives today. Our goal from start to finish is being the team that helps you reach a more comfortable future underlined by financial stability.

Call 888.301.0584 or contact us online for more information.

Casinos have hit the jackpot (3.14 billion in revenue) in Pennsylvania over the course of the last year alone. There are four (4) Casinos within twenty miles of Philadelphia: Sugarhouse; Harrah’s; Parx and Valley Forge and another seven (7) Casinos throughout Pennsylvania.

Revenue from table games play at Pennsylvania Casinos was $57.1 million in June 2012, according to a report released today by the Pennsylvania Gaming Control Board. The June figure boosted table games revenue during the 2011/2012 Fiscal Year to $663.9 million, an increase of 30.8% over the previous Fiscal Year. Combined with the slot machine revenue generated in 2011/2012, total combined revenue from Casino gaming was $3,140,629,989 or 10% higher than in the 2010/2011 Fiscal Year.

Bankruptcy And Gambling Losses

With the proliferation of Casinos in Pennsylvania, it is inevitable that gambling losses will result in some consumers filing bankruptcy to discharge those losses.

The general rule in bankruptcy law in Pennsylvania is that you can discharge (wipe out) gambling debts in bankruptcy. Not so long ago, bankruptcy courts regularly found gambling debt non-dischargeable.

More recently, however, and perhaps as a repercussion of the upsurge in legalized gambling in Pennsylvania, the courts are allowing discharge of this debt.

The two issues critical to erasing gambling losses are “full disclosure of the gambling debt” and “timing of filing the bankruptcy case.”

All gambling losses must be fully disclosed on the Statement of Financial Affairs which is filed with the Court in your case. Failure to disclose the gambling debt could lead to the gambling debt surviving the bankruptcy case if a gambling creditor brings this oversight to the Court’s attention.

Bankruptcy Gambling Losses Definition

And equally important, the timing of the bankruptcy filing is critical because credit card companies have a right to object to a discharge of “cash advances” and “luxury goods or services” within 90 days of the filing of the bankruptcy.

Therefore, waiting 90 days prior to filing a bankruptcy petition is critical to avoid a likely objection from a gambling creditor.