If you are thinking about filing for bankruptcy, you may have heard that some types of debt cannot actually be discharged through this process. Our lawyers often field questions about gambling debts and whether they can be charged through bankruptcy. It actually can in most situations, so if you are facing a significant debt and plan to explore your bankruptcy options, talk to a New City, New York bankruptcy attorney who can help you get the process started.
Are Gambling Debts Considered Unsecured Debt?
The reason why gambling debts can be discharged is that they are often considered “unsecured debt.” This is debt created without any collateral promised to a creditor. Credit card bills, medical bills, and gambling debts are all considered unsecured debts, so they can all usually be discharged through the bankruptcy process.
There are some exceptions and rules to keep in mind though. In some cases, gambling debts can actually be considered cash advances or even luxury goods or services. This is common in situations where a line of credit is extended to somebody. They gamble with their credit instead of putting up their own money, and then they owe the casino a significant amount of cash. Our lawyers can do their best to make sure that you file for bankruptcy at the right time and that there is no confusion over whether or not these gambling debts are unsecured debt.
When Can a Creditor Fight Against the Discharge of Gambling Debts?
There are some situations where a creditor will try to fight the discharge of your gambling debts. The way that most do this is by accusing a debtor of fraud or false representation. They essentially have to show that you took out these gambling debts with no intent of repaying them.
This is quite hard to prove, and the burden of proof is completely on the creditor here. We can help you defend yourself against any accusations of wrongdoing and discharge as much debt as possible through bankruptcy.
Do I Need a Bankruptcy Lawyer?
Having a bankruptcy lawyer can be helpful for a few reasons. Your attorney can help you:
- Figure out what form of bankruptcy is right for you
- Fight back against creditors who still want to come after your assets
- Handle all of the necessary paperwork
- Protect certain assets from liquidation
- Develop a payment plan that is acceptable to creditors
- Keep track of important hearing and court dates
It is possible to file for bankruptcy on your own, but it can be quite difficult to manage. Let us put our experience to work for you.,
Contact Our Firm Today
If you think that bankruptcy may be the right option for you, contact the Lauterbach Law Firm. We can schedule a consultation and tell you more about your options and what an experienced attorney can do to help you. We will make it easy to make a fresh financial start.
