information on filing ch 7 with gambling debt

[sunshinepa]

Hi. New to this forum so please bear with me and let me know if I am doing this right please!

I am considering filing ch 7. Short history, nursed father for two years with brain cancer, helped son who lost job support family for a year and then went nuts........had many cash advances at a casino

Wondering if anyone else can share experiences or advice on filing ch 7 with gambling credit card advances.

[blockhead]

I think you'd have to share how much and when exactly was the last advance, and how many payments since. I know that gambling debt was specifically asked on the laundry list of questions I got from the USTs office

[sunshinepa]

Thanks for the reply blockhead. I did see something somewhere in this forum about someone who had a similair problem and completed 341 but I being new, I can't find it again. Not all the advances were for that, alot for son to help feed kids and support them.

[liz417]

Time is your friend right now, let the cash advances age. Stop using your credit cards and go to a cash-only living. Make sure you can support yourself post BK.

[catleg]

liz417 is correct. Let some time go by, it's no big deal. I suspect with all the new casinos in PA they're starting to see a lot more gambling related BK's than they used to. Just be careful to report any W2G's you got for slot winnings on your taxes and take the offsetting gambling loss as an itemized deduction. They have no understanding or compassion about that issue. Trust me, I know, the hard way.

[sunshinepa]

Tks liz47 and catleg for the response. I do plan on leaving time, just not sure how much and when to stop paying the cards as it is getting tough to do. Truly, I am retired with a good gov't pension so no worries on supporting myself. I never really used cards until my son lost his job, had no money for him, wife and kids to live and keep house and car. And the rest was just done due to grief ..........had tons of cards, tons of credit and etc........like most, just a stupid thing to do for the gambling. Don't regret helping my son stay afloat,,,,,,,gkids have to have a roof and food but looking back, did it stupid....should have just paid their bills with card and not sent all the cash advance money.

[catleg]

I think the consensus is to make 1 or 2 payments after the last charge so you don't look like you charged up the cards with no intent to pay. You probably have already heard about the presumed non dischargeability of cash advances taken within 70 days of filing for BK or luxury purchases within 90 days. Having said that, if you need credit cards to buy stuff like food and gas it won't get a second look even right up until the day you file.

[sunshinepa]

Tx Catleg. I have made more payments than that and plan to continue some for a few more months if possible. Concern is how many and then when to file after that.......obviously need to save for atty and check some out. I am not using the cards and don't intend to.

[Jackdog]

I think you have some time on your side. I missed my first credit card payment with Discover in February. The rest I missed in March. From what I read I'm at the sweet spot is 400-4000ish (on the cards) to sue. I get calls nonstop, but no threats of lawsuits in mail yet. If you've made more than two payments and want to make a couple more before taking the plunge. I don't see any problem as long as you pay the things you need to pay also (groceries power mortgage/rent those type of bills)

[sunshinepa]

jackdog........txs for the answer. One question.......what do you mean by sweet spot........do they not usually sue for amounts over what you mentioned?

[Jackdog]

Yeah there are more factors to it and I'm sure others will know more. But, from what I've read the sweet spot is 400-4000k. I have no assets other than my home which will be exempt. I do have decent furniture nothing spectacular but I plan to keep that even if I have to work with trustee on that. Most of my cards the debt is between that range except for a loan with beneficial at 7k. My Discover (which I've read is quick to sue) balance is just over 2k in May I will be 4 months past due on that. I check the clerk of courts website daily. So far nothing but calls. Discover has stopped calling though. But at this point a lawsuit won't accomplish much. I don't make a lot of money. I will be retaining my attorney this week. I have my house which I'm up to date on and plan to keep.

I worried A LOT before finding this site. I wasn't sleeping I wasn't eating I would lay in bed and night and just stress. Then talking to the people here and doing free consultations with attorneys eased my mind. I never wanted to go this route but it is what it is.

Start looking at attorney's I think they will put your mind further at ease. How long ago was the last cash advance?

[sunshinepa]

Jackdog.........last large advances and bal. transfers were in January.........however, debt is bit higher than yours over 4 cards. I am researching as much as possible and reading all stuff here that I can. Trust me, I have seen worse scenarios than mine but still think I need more time due the the number of advances and the large bal. transfers.

[HHM]

There is nothing inherently objectionable to filing BK over gambling debt. The fact that the debt was incurred for gambling is a minor factor. The issue is the how? when? and what?

-How did you incur the debt; cash advances on CC, casino markers; etc
-When did you incur the debt; and
-What did you do after you incurred the debt (did you make at least the minimum payments, and if yes, for how long).