Whether you can discharge gambling debts in bankruptcy depends on when the gambling happened. If the gambling occurred within 90 days before the bankruptcy was filed, the gambling debt will be non-dischargeable. This means the debtor will still be responsible for the gambling debts even after the bankruptcy is over.
Can I Gamble during Bankruptcy?
It is fraudulent for debtors to sink his or her money into gambling if the debtor intends to use gambling as a way of depriving creditors of money. If the debtor gambles during bankruptcy, the debtor risks having all of his or her debt become non-dischargeable. This means that the debtor will be obligated to pay all debts post bankruptcy, not just the gambling debts.
Do I Have to Report My Gambling Debts?
Yes. The debtor must satisfactorily explain where all assets went. If you lost money to gambling, you must report that loss or your debts could become non-dischargeable.
Do I Need a Lawyer?
It is important to hire a bankruptcy lawyer when filing for bankruptcy. Many of your assets may be exempt from being taken by creditors. An experienced bankruptcy attorney can help protect your assets, and make the entire bankruptcy process as painless as possible.