Gambling debt can be included and discharged in your bankruptcy case.
That being said, it may be scrutinized by your creditors differently than the other types of debt you have. This is because any creditor in your bankruptcy case can object to debt being discharged. The bankruptcy code allows your creditors to object to their debt being discharged, if they can prove you took the debt out without the intent to pay it back.
Why might this impact gambling debt? With gambling debt, usually you sign something saying you intend to pay the debt back or you have the funds available to pay the debt back.
One way a creditor may be able to prove the debt shouldn’t be discharged is if they can show a statement in writing, that is materially false, respecting your financial condition, that they reasonably relied on the statement, and it was done with the intent to deceive. 11 U.S.C. § 523(2).
As an example, if the creditor can show you took out a gambling debt, by signing a document saying you had the funds to pay the debt back, but really didn’t, they may have an argument to dispute the dischargeability of the debt.
Exceptions from discharge under 11 U.S.C. §523(2) are harder to prove and your creditor will have to have evidence to support their claim. Your creditor will also have to file their objection by the deadline listed in your 341 notice. Usually this is by the discharge date (typically 60 days after your first scheduled 341 hearing).
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