Tax Returns - Question

[benniebear]

I am in the process of filing for Chapter 13 with a 100% repayment plan for my unsecured debt.

I am in this position because of a gambling addiction for which I now in recovery.

My 2006 tax return has about $100K included in my gross income as winnings, however, I was also able to include the $100K as a loss on my itemized deductions. I lost FAR more than I ever won, but I am worried that the trustee may ask me to prove that I lost the money. I do not know how I would do that as I did not save all of the hundreds of receipts for withdrawals.

Do you think this will pose a problem for me at the 341 and confirmation hearing?

I am worried sick.

[CATCHMEIFYOUCAN]

Gambler Here Too Your Not Alone !

I am in the process of filing for Chapter 13 with a 100% repayment plan for my unsecured debt.
I am in this position because of a gambling addiction for which I now in recovery.
My 2006 tax return has about $100K included in my gross income as winnings, however, I was also able to include the $100K as a loss on my itemized deductions. I lost FAR more than I ever won, but I am worried that the trustee may ask me to prove that I lost the money. I do not know how I would do that as I did not save all of the hundreds of receipts for withdrawals.
Do you think this will pose a problem for me at the 341 and confirmation hearing?
I am worried sick.

Hi There!

Don't worry toooo much! I filed in the state of Virginia. When I filed, I was worried about my credit cards having a poop load of cash advances, that's all I ever used my credit cards for (the majority of transactions that is). Did you save any of your statements? credit card statements? regular checking/savings account statements? Do you have a players card? Do you request a copy of a win/loss statement from the casino(s) ONLY if you have a PLAYERS card will you receive a win loss statement. The amount that you won/loss I would really be surprised coming from one gambler to another that you don't have a players card???
IF you haven't filed yet, I suggest you start getting copies of those statements before the bank/credit card companies shut you down, once your Bk file hits the bureaus, they will ban you from accessing your accounts!
I prepared myself for this before I filed just in case I had to prove my gambling losses/wins. Even before I filed, I always kept a good record of all my receipts (withdrawals) and statements just in case I get audited by the IRS one day. If you don't have actual receipts, the statements will reflect it all!
Being in the state of Virginia, my lawyer said to me: "there are no objections! and their aren't any laws in Virginia about gambling (to a certain extent)." I was really worried that when I filed (and I chose ch13) the creditors would object due to the heavy cash advances. My lawyer said the creditors might object but because you are paying them back (ch13) more likely the objection would be declined because Im paying them back. Much relief, but you know you can't stop worrying, can you, its just natural.
Well make a long story short, the Trustee never mentioned anything about my gambling, no mention about the cash advances (no request for proof of wins/losses either), and surprisingly enough, not a peep from the creditors! SHREWWW, my last cash advance was in the month of APRIL 2006, I obtained a new credit card from a credit union, they transferred the credit amount of $10,000 from their credit card to another credit union I had a credit card with (the transfer is considered a cash advance by the way!). Well soon as I got the card I went on a gambling spree and within that same month I used up all the credit. I filed at the end of July 2006. Yeah, I was taking a risk, but thats gambling? Right? I was prepared to suffer the consequences, I figured well if I can wipe out most of my debt and still have to pay on the cash advances, so be it. End result, discharged as of January 2007 (I was able to convert my case 3 months into the Ch13, my quitting one job and fall below my states median for a single person). I could have quit one job and originally filed for Ch13, but I didn't want to take any chances, I think its easier to file Ch13 and be able to convert to Ch7 than the other way around.
And keep in mine gambling is no different than those people who have used their cards for luxury items: vacations, cars, jewlry etc. The Trustee is will be more concerned how much you can pay back the creditors, if your hiding any assets etc.

Best of Luck to you ! Catchmeifyoucan