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Can I File Bankruptcy on Gambling Debts?

More and more folks in Indiana are betting on sports using popular apps. The days of bookies handing out cards at the bowling alley are long gone. Today, all you need is your phone and a credit card. Therein, of course, lies the problem. Gambling is addictive, and many lose control of the impulse quickly. Bankruptcies often involve creditors that are casinos or sports book apps. Even those who never place bets on their credit cards end up running those cards up as they run out of cash to gamble. 

One way out is to declare bankruptcy. A Chapter 7 bankruptcy would discharge all of the debt you owe to the credit card company. However, there is a catch. You will need to rebuild your credit after declaring bankruptcy, and the bankruptcy could impact your credit prospects for the next couple of years.

On the other hand, once the debt is discharged, you do not have to worry about your wages being garnished or a lien being placed on your family home.

Discharging Gambling Debt in Bankruptcy

By the time you have filed for bankruptcy, the addiction has to be under control. This is because you cannot discharge any debt that was accrued within the last 90 days of the filing. Why not? Well, the bankruptcy system can be abused. If I want to place 100s of bets and end up losing, I cannot just go and file for bankruptcy the next day. The creditor can allege that you have defrauded the bankruptcy system by planning the bankruptcy to coincide with the bad bets. 

The vast majority of gambling debts, however, are not considered fraudulent. They can be discharged in bankruptcy. Gambling debts are lumped under the category of “unsecured debts” on a credit card. Credit card companies know what they are doing when they advance money to folks to pay debts. The sportsbooks know what they are doing when they allow customers to place bets on credit cards. Do you ever wonder why you can’t buy a lottery ticket on a credit card? Why you can’t pay your bills with a credit card? Why you can’t pay your credit card payment with another credit card? Wonder no longer.

For every individual who files for bankruptcy, there will be a hundred more that lose a lot of money and pay it off with interest. So, you do not have to feel sorry for the poor sportsbooks and their partners in the credit industry. 

The biggest issue for those with gambling problems is stopping when they have to. You cannot place bets while you are in bankruptcy unless you can afford to pay them. And if you could afford to pay them, you would not be in bankruptcy. Hence, you need the issue under control to avoid a potentially worse situation. It will be eight years before you can file another Chapter 7 bankruptcy.

Talk to an Indiana Bankruptcy Attorney Today

Chris Arrington provides Indiana residents with Chapter 7 bankruptcy representation. If you are in inescapable debt, there is a way out. Call our office today, and we can begin preparing you for a fresh financial start. 

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