Tuesday, January 24, 2012

How Does Gambling Income Affect a Bankruptcy?

Bucks County is home to Parx Casino, a place where millions are won and lost each year. In addition, Philadelphia Park hosts horse racing, a longtime staple in the area. If you have won at a casino in the last year, your winnings are reportable in your Bucks County bankruptcy (I will address gambling losses in a future post). It will be factored into your "income" per the bankruptcy laws.

If income from gambling was obtained within the year of filing, it must be reported when filing for bankruptcy. However, gambling winnings include not just winnings in casinos but also lotteries and horse racing. Even if you win a 50/50 raffle, bingo game, or any other game of chance, you must report it.

Whether you have filed for a Bucks County Chapter 7 or a Chapter 13, it does not matter. The income must be reported.

What happens if you don't report the income? First, it is against the law to not report the income. Also, the Bucks County trustees are smart. They may find it on your tax returns. They may find it deposited in your bank account from your bank statements.

As a result, the Trustees may object to your discharge. Be smart, consult a Bucks County bankruptcy lawyer to make sure you file the right bankruptcy and report the right facts.

2 comments:

  1. Congratulations! This is the best thing, Thank you so much for taking the time to share such a nice information.
    Bankruptcy Lawyer

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  2. I would like to know how just losses affect chapter 7, the debts are already paid, I have a win/loss statement from the casino that says 0 dollars won, $7000 lost for the year 2013, will it help me to be able to file? I need to come up with $156.00 more in monthly expenses, will this count?

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