Debts incurred by gambling at casinos, riverboats, or other legal gambling establishments are eligible for discharge through bankruptcy. Lines of credit, personal loans, and credit card charges related to legal gambling may also be eligible for discharge.
Under Chapter 7, gambling debts may be discharged unless a creditor can prove you incurred the debt knowing you couldn't pay it back. In that case, the judge may determine the debt was incurred by fraud and shouldn't be discharged by the court.
In Chapter 13 bankruptcy, the court will likely require you to repay your gambling debts over three to five years via a reasonable payment plan set up according to your financial situation.
It's also important to note that gambling debts resulting from illegal betting, like betting on sporting events or at private parties, may not be eligible for a bankruptcy discharge because they're often not considered in compliance with the law.
If you're considering bankruptcy as a result of gambling debts, it's a good idea to consult an attorney. While you may not be discharged from all your debts, filing for bankruptcy will bring an immediate end to collections calls and letters, as well as any attempts by creditors to garnish your wages, furnish negative credit information, or seize your assets while you have a chance to reorganize your finances.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.