People are increasingly calling me with gambling debt problems. It’s not a surprise, as online gambling and sports books have rapidly proliferated the last several years. Fortunately, bankruptcy can help with these debts. However, there are several additional issues that must be accounted for.
The first issue with gambling that is that you cannot have recent credit card usage to pay the debt, otherwise it may be considered “abuse” of the credit cards. This would allow the credit card and finance companies to object to the discharge of the debt, leaving you with the debt . It will be important to show a period of time between your last credit card usage for gambling and the filing of the bankruptcy, normally between 90 and 180 days.
Additionally, it may show clear intent if you enter a program to deal with the gambling issue, such as gamblers anonymous. Bankruptcy aside, this would be a good idea as gambling addiction is a serious addiction , that should be treated like all other addictions. Regardless, there will need to be time between your gambling losses in the filing of the bankruptcy.
The second main issue with gambling debts is that they tend to reoccur even after they’re discharged in bankruptcy. I have had several clients call not long after the Chapter 7 discharge who are in a similar predicament as they were before they filed. This is problematic because you can only file a Chapter 7 bankruptcy every eight years. Going back to my earlier thought, it really shows the importance of treating gambling as the addiction that it is and seeking help. In reality, bankruptcy is only temporary help with the problem. A longer term solution will require seeking the help of addiction specialists.
If you are facing gambling debts, contact us at 412-414-9366. I would be happy to discuss your situation, go through the details, and make sure that you qualify. It is a common problem faced by many Americans at the moment, so there is no need to judge yourself, or beat yourself up about it.