QUESTION
Will my gambling losses be a problem in filing chapter 13?
Asked on Nov 20th, 2015 on Bankruptcy - Ohio
More details to this question:
I'm having to file Chapter 13 to save my house from foreclosure, I'm scared I will be denied because I have gambling earnings about $80,000 which are loses and I had to claim that my income taxes. I make about $100,000 a year from my job. I tried to get a modification for 2 years incurring back mortgage of $50,000. My house is under water of about $50,000, 2nd mortgage about $65,000, son's student loan $40,000, and other debt about $30,000. I had to bury my mother and paid out about $20,000 because she didn't have any life insurance and I incurred her medical debt because I her power of attorney. I want to keep my house because I have invested in it. Do you think I will have a problem or be denied Chapter 13?
5 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The problems you mentioned should not, by themselves, keep you from getting a discharge in Ch. 13. But because there are some problems, I strongly suggest you find a lawyer experienced in bankruptcy issues to advise and represent you. It's almost always worth the investment.
Answered on Nov 30th, 2015 at 4:36 PM
Living in Las Vegas, we see gambling winnings and losses quite often in Chapter 13. If you continue to gamble, and you are lucky, the bankruptcy trustee will expect you to pay more to your creditors. If you continue to gamble and your luck is bad, you may not be able to afford to pay your Trustee and that would mean your Chapter 13 and all its benefits would be lost.
Answered on Nov 30th, 2015 at 4:36 PM
The gambling losses will not be a problem as long as you can say you have stopped.
Answered on Nov 30th, 2015 at 6:04 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No.
Answered on Nov 30th, 2015 at 5:31 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Gambling will not be a problem in filing a Chapter 13. From your description, you might be able to strip the second mortgage.
Answered on Nov 27th, 2015 at 6:24 AM