Gambling Winnings and IRA Withdrawl as Income??

[Trying2Smile]

Hello... I am considering filing for chapter 13 - mainly due to a large gambling debt. I would curious if the gambling winning I've had over the last 6 months would be included in my income and if so, can I deduct the losses from my income? Also, I took out money from a Roth IRA - is that counted as income?

In the last 6 months I've won about $80,000 gambling and lost about $200,000 putting me in about 100k of debt...

My employment income now is also lower than it was preiously - went from working 4 days a week to 3 days a week due to cutbacks. High income in the last 6 months combined with income from gambling/IRA would make my income much higher than it is now - especially since I've stopped gambling if they base the payment plan on that. Would the payback plan be based on my income now if the situation is explained? Or my current job income over the last 6 months (w/ or w/0 winning & IRA)?

I have meetings with BK attornies next week but want to get as much infor before hand as possible.... Thanks!!

[LadyInTheRed]

I don't know whether these items are considered income on the means test. But, I can tell you that your plan payment is based on your Schedules I and J that, unlike means test, are forward looking.

Even if your last 6 month's income is an issue, you could wait to file.

[Trying2Smile]

Thanks for that info! If it's based on future income that would be just fine. What is the chapter 13 means test used for then?

[slim]

I believe the losses, if documented, would offset the income. The key is to document the losses if the wins were documented.

[AngelinaCat]

If you aren't looking to file a CH13 in order to save a home or other asset, if you wait the six months for the higher income and winning/withdrawal from the IRA to drop off the look-back radar, you may be able to file a CH7. Especially since your hours have been cut back.

We need a little more information in order to be able to properly advise you; things like do you own your home? Do you have a mortgage, or two or three? Do you have a car loan? How many people are in your household? Things like that....

[toojerm]

Do not consider filing CH13 unless you are resolving to quit gambling. Otherwise, it will be for nothing, and the plan will fail. A successful CH13 requires certainty...your income, expenses, etc. so that you can budget. This is hard enough without taking risks. Take it from a guy who did a CH13 primarily due to my former love of Vegas.

[AngelinaCat]

Do not consider filing CH13 unless you are resolving to quit gambling. Otherwise, it will be for nothing, and the plan will fail. A successful CH13 requires certainty...your income, expenses, etc. so that you can budget. This is hard enough without taking risks. Take it from a guy who did a CH13 primarily due to my former love of Vegas.

This true, even if you decide to file a CH7.

You MUST be able to support yourself on your legitimate earnings, and learn to go on a CASH ONLY basis. Credit cards are NOT allowed.

If you can't do that, then don't bother filing. You are only going to continue failing...