Bankruptcy gambling not sure

[Hello724]

Racked up 64k in debt in the past 6 months alone about 20k. Had some life events and I can’t keep up with payments. Spoke to three lawyers all different advice. But realistically with my purchases I would have to keep paying for 6 months to be out of the red zone. I can’t even do that but if I was to file Id be in trouble because of the way I used my cards for gambling. Not sure what to do honestly.

[justbroke]

Welcome to BKForum.

The creditors certainly will not like that you charged "on the eve of bankruptcy" which creates an impression that you never intended to pay. Certain debt, over about $750, has a presumption of nondischargeability because the bankruptcy code assumes you are insolvent within the 90 days of filing. This is why your attorney consults have said that you need to wait. You need to make an effort to pay. You need distance from when you were using the cards.

As you know, bankruptcy will never solve a gambling addiction. You absolutely must have it out of your system before filing because the Trustee will ask about your status.

The attorneys are giving you the very best advice. You can overcome this, but you need to come up with some sort of strategy. it may even include going into--and I am loathed to say this--a debt management plan (DMP) for the time being.

[Hello724]

Welcome to BKForum.

The creditors certainly will not like that you charged "on the eve of bankruptcy" which creates an impression that you never intended to pay. Certain debt, over about $750, has a presumption of nondischargeability because the bankruptcy code assumes you are insolvent within the 90 days of filing. This is why your attorney consults have said that you need to wait. You need to make an effort to pay. You need distance from when you were using the cards.

As you know, bankruptcy will never solve a gambling addiction. You absolutely must have it out of your system before filing because the Trustee will ask about your status.

The attorneys are giving you the very best advice. You can overcome this, but you need to come up with some sort of strategy. it may even include going into--and I am loathed to say this--a debt management plan (DMP) for the time being.

What is a debt management plan? Is it the one creditors offer? Like a hardship program where they rude interest rates etc? Or are you referring to something else. Thank you.

[justbroke]

I am referring to a debt-management plan which is run by a third party. They "negotiate" with your creditors and put you into hardship programs which each of the creditors. The non-profit DMP providers make a little money, but generally will get the creditors off your back. Anecdotally, many people that enter into DMPs end up in bankruptcy.