Bankruptcy and Gambling Debts

If you are considering filing for bankruptcy and also have playing debt, you may be wondering how that type of debt is handled in bankruptcy. Will agen slot pulsa it be dismissed so that you can be eliminate it? As with anything else in law, the answer is “it depends. inch Playing debt is usually unsecured, non-priority debt. In bankruptcy, that is the type of debt that is most easily dismissed. That is, it is not secured by many assets and it is not a “priority”debt like back taxes or child support that cannot be dismissed. So, in general playing debt can be dismissed.

While that is good news, there is another side of the coin that must be considered. The debt will be listed on your schedules as unsecured, non-priority debt and, if the creditor does not object to the discharge, the playing debt will be dismissed just like credit card debt, loans, medical debt, and other types of unsecured debt. That may be a big “if” though. The creditor may in fact object to a discharge of the playing debt. The foundation of argument employed by such creditors is that you did not have the way to repay the loan at the time the loan was made. This is considered a variety of fraud and fraudulently sustained debt is not dischargeable in bankruptcy.

This type of fraud is generally safer to prove with playing debt than with other styles of personal debt. For example, with credit cards it is often years earlier that the credit agreement was signed. The credit decision was based on your debts and income at that time, not your debt and income as it stands now. (Note, though that if you run up your charges just before filing for bankruptcy, that may also be considered deceptive and non-dischargeable).

If you have recently racked up playing debts and are considering filing for bankruptcy, you may want to consider holding off for a few months. The longer ago that the debt was sustained, the more unlikely that the creditors are to object to a discharge. The downside of course is that if you aren’t paying on the loans, the creditors are likely going to take collection actions between now and your bankruptcy filing. That may be the better option if filing now means that the debt isn’t dismissed.

Also keep in mind that if you put up many assets as collateral for a loan (whether for playing debt or otherwise), the lien against that asset remains valid. So, while you no longer have a personal obligation to repay the loan after discharge, the creditor can still repossess the asset support the loan.

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