You may have overcome a gambling addiction or otherwise had a bad gambling incident that you want to put behind you. But it may be difficult to do so if your gambling debts are still lingering. This may be worse if you are already under crippling debt. With this, you may have to turn to a bankruptcy filing. Continue reading to learn whether you can discharge your gambling debts and how an experienced Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can work on your behalf.
Can I discharge gambling debts in a Chapter 7 bankruptcy?
Generally speaking, you may be eligible to discharge your gambling debts in a Chapter 7 bankruptcy. This is because gambling debts are typically seen in credit card charges or casino markers, which is essentially a line of credit. However, you must be aware of the extenuating circumstances that make this doable.
For example, it may be in your best interest to file for a Chapter 7 bankruptcy at least 90 days from the date on which your gambling debt was incurred. This is because this debt may be presumed as a luxury good or service if it totaled $600 or more and was incurred within 90 days of your petition. In another sense, it may be categorized as a cash advance if it was $875 or more and was incurred within 70 days of your petition. In either case, it may be non-dischargeable.
It must also be noted that creditors may try to go against you in your bankruptcy proceedings. That is, they may attempt to make your gambling debts into non-dischargeable debts by claiming that you had no intention of repaying them. However, they may have a heavy burden of proof and have to prove this claim beyond a reasonable doubt. So, it may help your case if you have a good history of repaying your previous gambling debts. Or, if you can prove that you never gambled while unemployed or otherwise without a steady stream of income.
What are considered to be dischargeable debts?
Even if eliminating your gambling debt is not doable, you may rest assured knowing that there may be other debts that can be erased with your bankruptcy petition. Examples are as follows:
- Credit card debt.
- Personal loan debt.
- Unpaid medical bills.
- Unpaid utility bills.
- Judgments from unpaid credit card debt, medical bills, and other dischargeable debts.
- Tax debt, but only under certain circumstances.
- Student loan debt, but only under certain circumstances.
This is all to say that you must be proactive in disclosing your dischargeable debts in your bankruptcy filing. This starts with retaining the services of a skilled Rockland County bankruptcy attorney. Contact The Law Offices of Allen A. Kolber, Esq. today.