Gambling Losses and Bankruptcy

In Bucks County and elsewhere, there is a definite stigma attached to gambling losses and you may be embarrassed to admit such losses. However, it is imperative that these losses, which are considered unsecured debt, be disclosed when filing. From time to time, I have filed bankruptcies in Bucks County for a Chapter 7 or a Chapter 13 where Donald Trump's casinos have been a creditor.

Whether or not gambling losses can be discharged depends on many factors. For instance, if you
gambled excessively (by taking cash advances on a credit card) one day and lost, then filed for bankruptcy the next day, chances are the trustee will doubt you ever intended to make an attempt to repay the losses especially if the money used was obtained through a credit card cash advance. In such a case, you would most likely be required to pay back the money owed to the credit card company. Also, the credit card company has the right to object to the discharge of such a recent debt (less than 90 days prior to filing). Here is an interesting article by an Indiana Trustee related to gambling losses.

In some cases in a Bucks County bankruptcy, however, gambling losses can be discharged. With the proliferation of casinos in New Jersey and Pennsylvania (especially in Bucks County) it is inevitable that gambling losses and subsequent filing for bankruptcy will increase. Be upfront with your bankruptcy attorney if you fall into this category and rely on him/her to guide you to the proper course of action.