Across the United States, hundreds of billions of dollars are spent each year in wagers and gambling. According to the American Gaming Association, nearly $150 billion alone was spent on illegal sports betting. As a result of these statistics, many Americans find themselves in over their head in debt from gambling and gaming.
One of the most common questions regarding gambling debts is whether or not they are settled when you file for bankruptcy. If you’re also wondering about your gambling debts and bankruptcy, here is what you should know.
Discharging Gambling Debts Through Bankruptcy
If you have debts as a result of gambling, the good news is they are dischargeable through both Chapter 7 and Chapter 13 bankruptcy. However, settling debts from gambling is not nearly as simple as settling debts from overextended credit.
When you bring your gambling debts to a bankruptcy court in the hope they will be dismissed or diminished, you should be prepared to have them investigated and reviewed more thoroughly than traditional debt.
Here is what the courts will want to know:
- Did you incur your gambling debt with the intention of paying it back?
- Was the debt incurred legally?
- Have you made any attempts to repay the debt?
- What state of mind were you in when the debt was incurred?
- Have you disclosed your debts appropriately?
How you answer these questions and the evidence associated with your debt plays a vital role in whether the courts will include your gambling debts in your bankruptcy. Therefore, any and all evidence you can provide in your favor regarding these questions helps immensely in proving your case.
One of the best ways to help ensure your gambling debt is settled in bankruptcy is to stop gambling, attempt to repay your obligations to the best of your ability, and seek help if you believe you have a gambling addiction. If the courts can see that you have taken action to remedy your situation, they’re more likely to rule in your favor.
How You File For Bankruptcy Determines How Your Debts Will Be Repaid
Whether you file a Chapter 7 bankruptcy or Chapter 13 bankruptcy determines how your debts will be repaid. Filing a Chapter 7 bankruptcy will require you to surrender your assets to repay your debts, while filing a Chapter 13 bankruptcy will create a repayment plan to make your debts more manageable.
Hire a Knowledgeable Louisiana Bankruptcy Attorney to Assist You
Filing for bankruptcy and proving your case for a gambling debt settlement is an excellent reason to call a knowledgeable Louisiana bankruptcy attorney. At E. Orum Young Law, the staff has more than 35 years of experience in settling bankruptcy cases and have helped over 20,000 individuals with their cases.
Call the office today at 318-450-3192 or fill out our online form for your free case review. We are here to help and happy to inform you of what we can do to remedy your situation.