This will extend certain restrictions put upon you. Thanks, Nicole James James. Judge Ginsberg also stated that a court cannot just assume the credit card issuer actually relied on any alleged representation i. Do not enroll in any debt relief program until you have sought help for the underlying gambling addiction or issue first. Judge Ginsberg stated that it could hardly conceive why such reliance, if it did exist, should always be justifiable. In general, this question generally turns on an examination of whether a debtor truly intended to pay the debt back or not. I am finding it overwhelming to pay off the debt and deal with the real issue at hand here which is the gambling addiction!
Can Gambling Debt be included in Bankruptcy?
It is not correct to say that gambling debt will always result in the length of your bankruptcy being extended. In general the fact that you have gambled in the past is not seen as a reason to do this. This will extend certain restrictions put upon you. The length of a BRU will normally be years.
However even if you receive one it is unlikely to have much affect on your day to day life. The main restrictions that are extended are not being able to borrow more which you will not be able to do anyway and not being able to act as a Company Director.
If you have gambling debt your bankruptcy is likely to last the standard 12 months. However this could be extended if the level of this type of debt is significant. If you have had a gambling addiction which has contributed to your debt it would be wise to seek help. You do not have to prove that you have stopped before you go bankrupt but it is clearly a sensible thing to do.
Given you believe you are addicted to online gambling a good organisation to speak to is GamCare. Alternatively you can speak to Gamblers Anonymous for help with all types of gambling addiction. In your interview with the Official Receiver it will be useful for you to be able to tell them that you are no longer gambling and about the help you are receiving. They will be happy to hear you do not intend to gamble again and risk getting back into debt.
Try to stop gambling before going bankrupt. This will help prevent you getting back into debt in the future. Please leave this field empty.
They will be happy to discuss the results if you require. And one of the principal points in the bankruptcy process at which bad faith might be found by the court is where one creditor is either favored over other creditors by the filing debtor, or where assets or cash that might have been part of the Bankruptcy Estate that is administered by the Bankruptcy Trustees is otherwise transferred in the months or year prior to the filing of the case.
Thus, when you have gambling debt and bankruptcy is desired, you are going to have to disclose any payments made to bookies, casinos, or other gambling-related creditors. If you sold off personal property in order to pay the debt, or you simply titled property over in satisfaction of the debt, a Chapter 7 Trustee in particular, depending upon the amount of money or value involved, is very likely to pursue that individual to avoid, or undue, the transfer and retrieve the money or property for re-distribution to your other creditors.
Where there is gambling debt and bankruptcy, beyond the initial filing of the petition and these powers of the trustee to undo transfers of funds that appear fraudulent, it is also possible that gambling losses will be found nondischargeable as the bankruptcy proceeds. This is particularly true when it comes to credit card cash advances received by the debtor wishing to file bankruptcy for the purpose of paying off or incurring gambling debts.
And, of course, the outcome of the litigation to declare the debt non-dischargeable will have some resolution that will cost you: This occurred, in one case, when a debtor was found by the court to be suffering from a bona fide, diagnosed gambling addiction. In another case, this occurred when the credit card company failed to perform even the most rudimentary investigation into whether the debtor it was issuing a credit card to would be able—or willing—to pay the debt back.
In general, this question generally turns on an examination of whether a debtor truly intended to pay the debt back or not. Proving this intent is not always easy. It is easier for a debtor wishing to file bankruptcy to avoid having such debt in the first place, but the same could be said for virtually any of the types of debt which drive individuals toward bankruptcy. More and more states and other localities are allowing casinos to be built in their jurisdictions and approving other forms of legalized gambling.
States, cities, and counties, like the individuals who reside within them, look toward gambling as a quick way out of difficult financial circumstances. For individuals, the flip-side of this coin is deeper debt and a greater likelihood of filing for bankruptcy.