I have a question about gambling before a Chapter 7 filing and whether it’s considered as income. Since February of this year, my overall losses are just under $4,500 so there’s no boost in income. I have my primary and only valid income which is my job, but I have gambled and on my bank statements it would appear that the deposits show from when I cash out, even though you can see where a deposit of $250 to a casino sometimes only results in a $50 withdraw (and obvious loss). Do trustees understand (or care) that most wins are washes or just complete losses in the bigger picture or do they look at each deposit as an increase in income (even if you lost $2000 to regain $500)? I have already stopped gambling, self excluded and have taken the steps to get help. I’m just concerned about how what shows on my statements, and the fact I NEVER claimed it on my taxes because I thought if I didn’t receive a tax form from the casino, the win wasn’t taxable. Will the fact I never claimed the win, even though the losses would cancel them out in an itemization, open up a can of worms with the IRS? And am I creating a problem for myself? Reason for bankruptcy is, to be honest, poor money management, change in living situation which resulted in gambling and then lots of debt. I’m about $33k in debt.
Also I already pass the means test as a household of 2 making $53000k (gross) a year and the median income is $81k in PA. I also already have a lawyer, took the credit counseling first session and am scheduled to file next Wednesday. I just want to be prepared. My lawyer, who I met with, either doesn’t entirely understand my concern or hasn’t entirely reviewed my statements. I don’t know. Or I am worrying for nothing and he’s ignoring me and avoiding me going down this rabbit hole of concern. Not sure which. Any advice is appreciated.