G is for Gambling Debts in the Bankruptcy Alphabet. Those of us practicing bankruptcy law are surely seeing an increase in new clients who have incurred debts from local casinos.
The general rule in bankruptcy law in Pennsylvania is that you can discharge (wipe out) gambling debts in bankruptcy (if you do it properly). First, if you’ve incurred any gambling losses in the previous year, you must disclose this fact on your Statement of Financial Affairs which is filed with the Court in your case. If you fail to disclose this, then a gambling creditor could bring this oversight to the Court’s attention. And because all debtors have an absolute duty to disclose matters truthfully, let’s just say that it wouldn’t look too good at that point!
But overall, there is no specific exception to discharge for gambling debts. There are of course certain debts that are clearly non-dischargeable in bankruptcy. Child support and alimony, for example, come to mind as well as criminal court restitution and recent income taxes. These are all debts that are specifically non-dischargeable.
On the other hand, Bankruptcy Code section 523(a)(2)(C) makes a debt non-dischargeable if the debts was for a “luxury good or service” over $1,225 and purchased within 60 days of the filing of the bankruptcy. That section also precludes discharge of cash advances over $1,225 obtained within 60 days of the filing of the bankruptcy.
In most people facing this type of situation, these exceptions can be avoided by simply waiting a longer period of time before filing their bankruptcy case. Once you choose to retain a bankruptcy attorney, then your attorney usually handles all of the communications with your creditors, which obviously makes things easier for you.
If you have specific questions, I urge you to download my free e-book on bankruptcy law. And as always, if you have specific comments or questions, let me know!
Here are more entries from the Bankruptcy Alphabet:
Garbage In, Garbage Out from Wisconsin Bankruptcy Attorney Bret Nason at http://nasonlawfirm.com/archives/742;
Garnishment from New York Bankruptcy Attorney Jay S. Fleischman at http://www.consumerhelpcentral.com/bankruptcy-alphabet-garnishment/
Garnishment from Maui Bankruptcy Attorney Suart Ing at http://www.bankruptcyhi.com/2011/12/g-is-for-garnishment/
Garnishment from Philadelphia Bankruptcy Attorney Chris Carr MBA at http://christophercarrlaw.wordpress.com/2011/12/18/garnishment-will-bankruptcy-help/
Garnishment from Chicago Bankruptcy Attorney Daniel J. Winter at http://www.bankruptcylawchicagoblog.com/bankruptcy-alphabet-g-is-for-garnishment/
Gee!!! from Philadelphia Banckruptcy Attorney Ray Kempinski at http://www.colemankempinski.com/g-is-for-gee/
General Unsecured Creditor from Omaha and Lincoln, Nebraska Bankruptcy Attorney Ryan D. Caldwell at http://bankruptcyblog.caldwell-lawfirm.com/2011/11/09/bankruptcy-alphabet-g-is-for-general-unsecured-creditor.aspx
Gifts from Los Angeles Bankruptcy Attorney Mark Markus at http://www.bklaw.com/bankruptcy-blog/2011/11/g-is-for-gifts/
Goals from Colarodo Springs Bankruptcy Attorney Bob Doig at http://springsbankruptcylaw.com/colorado-springs-bankruptcy-abcs-g-for-goals/
Good Faith from Taylor, Michigan Bankruptcy Attorney Christopher McAvoy at http://downriverbankruptcy.com/good-faith/#axzz1h365McUI
Good Faith from Metro Richland Consumer and Bankruptcy Attorney Mitchell Goldstein at http://www.morethanbankruptcy.com/bankruptcy-a-z-g-is-for-good-faith.html
Good Manners from Cleveland Area Bankruptcy Attorney Bill Belena at http://ohiobankruptcysource.com/g-for-good-manners/
Good to me from San Francisco Bankruptcy Attorney Jeena cho at http://www.jclawgroup.com/blog/bankruptcy-alphabet-g-is-for-good-to-m/
Guaranty from Northern California Bankruptcy Attorney Cathy Moran at http://www.bankruptcysoapbox.com/bankruptcy-alphabet-g-for-guarantee/
Gumshoe from Marin County Bankruptcy Attorney Catherine Eranthe at http://marin-bankruptcy-law.com/313/bankruptcy-a-to-z-g-is-for-gumshoe/
Guilt from Detriot Michigan Bankruptcy Attorney Kurt O’Keffe at http://stopcreditor.com/feel-guilty-filing-bankruptcy-good/
Guaranty from Livona Michigan Bankruptcy Attorney Peter Behrmann at http://www.livoniamichiganbankruptcy.com/g-is-for-guaranty-in-bankruptcy/
Gomes v. Countrywide Home Loans, Inc. from Lakewood California Bankruptcy Attorney Christine A. Wilton athttp://www.losangelesbankruptcylawmonitor.com/2012/04/articles/chapter-13/g-is-for-gomes-v-countrywide-home-loans-inc/
Garnishment at Birmingham Bankruptcy Attorney Christine A. Wilton athttp://www.birminghambankruptcyhelp.com/bankruptcy-alphabet-g-is-for-garnishment/