- The high interest rate that the credit card companies charge in combination with the fact that gambling leads to further debt, would put the debtor in a position to never get out of debt. By taking advantage of the lifesaver that chapter 7 provides, a person with gambling debt can obtain a fresh start. The real issue is recidivism.
- Gambling debt is considered as unsecured debt but there are situations where these debts can be a bit complicated. For the debt to be completely eliminated you will have to file a Chapter 7 bankruptcy. But to qualify for a Chapter 7 bankruptcy you must pass the means test.
- Gambling debt may be secured or unsecured. If you took out personal loans to gamble, that debt is unsecured. It can be discharged through either Chapter 7 or Chapter 13. If you borrowed against the equity in your home, car, or other valuable asset, the gambling debt is secured.
Get Out Of Gambling Debt & Casino Markers
Gambling Debt And Chapter 7-11
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.
Gambling Debt and Bankruptcy. Some debtors considering bankruptcy have accrued a large amount of gambling debt. While generally speaking some gambling debts may be dischargeable in Chapter 7 bankruptcy, the discharge of that debt may depend on a few factors. This makes it a secured debt, rather than an unsecured debt. Considering whether you want to keep or surrender that property is another factor in deciding whether Chapter 7 or Chapter 13 bankruptcy is right for you. If you have gambling debt and want to discuss your options, contact Broward County bankruptcy lawyer Howard Butler.
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.
Gambling Debt And Chapter 7 Quizlet
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.
Gambling Debt And Chapter 71
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
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.