Filing for bankruptcy after large amounts of gambling

There are a number of reasons that Florida residents may need to file for bankruptcy, and gambling away someone’s savings is one of them. When people rack up a large amount of gambling debt, they may be wondering if they are still able to file for bankruptcy. In many cases, they will be able to file, but they may not be eligible for a Chapter 7 filing.

Chapter 7 bankruptcy is often preferred because, although people may have to give up some of their assets to help pay off creditors, many remaining unsecured debts may be discharged at the end of the process. Chapter 13 bankruptcy requires that someone follows a payment plan that lasts for three to five years, but some debt may be written off at the end of this time frame.

Since people must report any gambling done in the two years prior to filing for bankruptcy, Chapter 7 bankruptcy may not be available since the court may believe people did not make a good faith effort to eliminate their debt. However, Chapter 13 bankruptcy is normally still available because individuals will still be taking responsibility for what they owe.

When people have accrued a large amount of debt that they cannot pay off, even with reduced interest rates or adjusted minimum payments, bankruptcy may be able to help them get out of debt. However, it’s important to note that bankruptcy will not necessarily eliminate all debt. Student loans and tax debt are often ineligible for a bankruptcy discharge. There are several eligibility and other requirements associated with Chapter 13 bankruptcy that a lawyer can explain.