I just returned from a 341 meeting today and thought I would remind you all that it is important to correctly list gambling winnings (income) in your income schedules, and your bankruptcy gambling losses in the Statement of Financial Affairs. Depending on your situation, they may need to be listed elsewhere. They especially need to be reported in the petition, schedules, and SOFA if they occurred in the past year.

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US Trustees has been concerned about this, so the do watch for excessive amounts of gambling losses. A US Trustee could object to the entire Chapter 7 bankruptcy and you may end up without your discharge.

The Ch. 7 trustee might ask about it in the 341 meeting and you’ll need to be ready to truthfully respond.

Individual creditors might object to discharge of an the debt specifically attributed to gambling (excessive withdrawals at the casino with their credit card).

With the proliferation of casinos around the country, this is becoming more of a problem. Here in Western Washington, they are scattered all over the place. They seem to be doing well; many of these casinos are expanding and advertising to attract additional clientele. More people are finding themselves in situations where they might have to report these sources of income or the gambling losses that usually come along with visiting casinos, and they fail to report them. Remember, the petition is signed under penalty of perjury so you’d better get your hands on the numbers and report them.

The discharge of certain gambling debts in bankruptcy will often be determined by a creditor’s willingness to object to the debtor’s discharge. If a gambling debt was incurred just before filing bankruptcy or was charged to a credit card the chance of the bankruptcy discharge being challenged by the creditor increases. 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. 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.

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Bankruptcy Gambling Losses

If these are your issues, see a bankruptcy attorney (a local one in either Everett or Mount Vernon Washington.) We’ll help you get it right. This is not something you want to be going it alone on.

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Visit our bankruptcy website at http://www.snohomishcountybankruptcy.com

Bankruptcy Gambling Losses Calculator

Cheers!

Mark D. Nusz

Bankruptcy Gambling Losses Meaning

Bankruptcy Attorney