Gambling and bankruptcy frequently go hand-in-hand. The unmistakable excitement, the regret, and the worry of facing the reality of losing everything were the causes of one’s miseries.
These circumstances appear to be occurring as gambling becomes more accessible with the rise of internet gambling and fantasy sports. Loss of employment, unforeseen costs, excessive spending, the challenges of raising a family, and a mountain of gambling debt are some of the most common causes of bankruptcy.
But are they Dischargeable?
So, the obvious question is whether it can forgive gambling debts or if the debtor must pay them in whole or part. The response is that the issue of gambling is an immoral activity by many, and the legal system shouldn’t support bad behavior. However, the majority of gambling debts, though not all of them, can be dscharged.
The legal system created the new bankruptcy regulations to ensure that debtors may pay back some of their debts. The bankruptcy regulations also sought to restrict the discharge of some debts deemed too significant. The debts that cannot be discharged include student loan debt, obligations to pay child support, and some debts incurred due to wrongdoing, such as profiting from a crime.
Factors that Lead to Bankruptcy
Understanding the origin of gambling debts is necessary for determining how to manage and somehow be free of any obligations. The following are the causes of bankruptcy:
Overspending
Overspending is one of the root causes of gambling debt. A significant characteristic of gambling-related overspending is that it results from impulsive behavior. In this way, gambling debt is comparable to many other debt-causing behaviors, such as overspending on luxury products or engaging in excessive internet shopping.
A debtor will frequently take a cash advance on their credit card to borrow the funds. The gambler can settle the passage if they succeed. It can obtain the advance by writing checks that the credit card provider permits or using an ATM withdrawal. In contrast, if the gambler loses, collection efforts against the gambler will almost happen if the credit card company is not paid.
According to statistics, nearly 90% of those suffering from gambling addiction use debtors’ credit cards to withdraw cash advances into accounts to fund gambling habits. It enables individuals with known gambling issues to receive financial advances totaling hundreds of dollars and go to a casino only to lose everything.
Gambling Addiction
Addiction can lead to excessive spending on things like gambling. If gambling has gotten out of control, it is crucial to get counseling.
Remember that there is no reason to feel embarrassed about the circumstance. No one expects gaming to cause someone into bankruptcy, even though a lot of individuals enjoy gambling.
Seek Legal Guidance
Actual fraud differs from fraud committed for bankruptcy discharge purposes. It may be unlawful to fail to fulfill an obligation, in which case the debtor could face criminal charges.
The debtor will not be shielded from criminal charges or the consequences of criminal behavior by bankruptcy. There could be further problems that need hiring a skilled criminal defense attorney.
An expert consumer bankruptcy lawyer is familiar with the complexities and subtleties of linking gaming debts to fraud. The recommendation is to always get legal guidance from an experienced consumer bankruptcy attorney before taking action, including filing for bankruptcy to discharge gambling and other debts.