Gambling and Bankruptcy in Minnesota and Beyond | LifeBack Law Firm

Posted by Charles Nguyen on November 9, 2021 at 7:45 AM

Gambling is an addiction brought on by a combination of psychological, societal, and familial factors. The repercussions of gambling affects you, your family, your job and other important parts of your life. Serious gamblers take out personal loans, use their retirement accounts, savings, and even borrow against their home or car loan.

Now, a gambler may be in a position where their debt is too high to maintain any standard of living for themselves, and or their family.

So, can gambling debt be discharged in a bankruptcy? The answer is that it depends. For example, say you’ve taken out an unsecured personal loan of $5,000. You take that $5,000 to a casino and gamble it all away. Then, six months later, you file for bankruptcy. In this straight forward example, that $5,000 would probably be discharged in a bankruptcy. Now, let’s say you took out that loan one month before filing, with the intent to never pay it back. Adding those facts, that $5,000 would probably not be dischargeable.

Lines of Credit at the Casino

What about casino markers or lines of credit through a casino? Here, again, it may be a factor of intent, and or timing that determines whether that marker or line of credit is dischargeable. Section 523(a)(2)(c) of the Bankruptcy Code outlines protections for creditors, i.e., casinos in cases like this. If there’s over $950 of cash advances (i.e., lines of credit), made within 70 days of filing bankruptcy, it is presumed to be not dischargeable. Further, under the same section, if a gambler/debtor files bankruptcy within 90 days of obtaining gambling debt and that amount is over $675 then that debt may also not be dischargeable.

CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

If you have issues with gambling, please seek help; including, reaching out to Minnesota’s nicest bankruptcy law firm by calling us at 800-551-3292 or going to www.lifebacklaw.com. We don’t judge you and you won’t regret it!

 

Topics: bankruptcy in minnesota

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