My situation explained

[Broke1234]

OK I still owe about 57k on 7 credit cards and am NOT delinquent on any of the accounts.

The majority of the 57k were transfer balance checks made out in my name.

So those checks that come in the mail along with your statement I would write out in my name and go cash them at the bank. So technically those were not cash advances? right?

I had a severe gambling problem and I can hardly understand how hooked I was when I was doing this. I have to live with the regret and it's very depressing and hard to put it behind me because I hate what I did.


So my question is am I even a candidate for chapter 7? I have looked into the settlement route instead of bankruptcy, but as we know that option also has negative consequence? Any advice is much appreciated....

[fltoo]

Shake off the self loathing, get some counseling to stop gambling and move forward.

If your questioning whether or not the gambling determines the chapter you are filing, it does not. Nor does it matter if the loans were cash advances or cc checks.

Proceed to research BK as you would if you had any other kind of debt.

[Genenco]

As I am a compulsive gambler myself, I can assure you it matters not as to how you got into debit (As long as major illegal acts weren't committed) and you can BK the whole shooting works.

I was $30K+ back in 1995 and yes I can relate to the feelings of depression, stunned amazement at how fast I was able to rack up the amount (In 18 months..Ouch)

Depending on your state, try Gambling Anonymous. I have come and gone several times over the years and right now, just stay away from those "Tugs" on my arm when I am near those machines.

Best wishes.

[StartingOver08]

.....

So those checks that come in the mail along with your statement I would write out in my name and go cash them at the bank. So technically those were not cash advances? right?....

So my question is am I even a candidate for chapter 7? I have looked into the settlement route instead of bankruptcy, but as we know that option also has negative consequence? Any advice is much appreciated....

If you made out checks to yourself (or the checks were in your name) and you cashed the checks, those are typically cash advances. But really it does not matter as long as you are beyond the miniumum 90 days from the last advance.

You can do the settlement route instead, but the consequence there is the 1099-C which you do not have if you file BK. The 1099 -C is for the forgiveness part of the debt. Say if you owe $57k and can settle for $20k, you would have $37k 'forgiven' and have to pay income tax on that amount. UNLESS you can show you were insolvent at the time. Fill out IRS Form 982 to show if you are insolvent. If you can make this work for you, the settlement route is better because then you will still have a BK that you can file should you have larger issues at a later time in your life ...but that is a decision only you can make. Good luck.

[Broke1234]

If you made out checks to yourself (or the checks were in your name) and you cashed the checks, those are typically cash advances. But really it does not matter as long as you are beyond the miniumum 90 days from the last advance.

You can do the settlement route instead, but the consequence there is the 1099-C which you do not have if you file BK. The 1099 -C is for the forgiveness part of the debt. Say if you owe $57k and can settle for $20k, you would have $37k 'forgiven' and have to pay income tax on that amount. UNLESS you can show you were insolvent at the time. Fill out IRS Form 982 to show if you are insolvent. If you can make this work for you, the settlement route is better because then you will still have a BK that you can file should you have larger issues at a later time in your life ...but that is a decision only you can make. Good luck.

This form 982 information is critical and I just did some further research about it. So thanks and hopefully it helps somebody else

[Broke1234]

I now owe 24k on 3 cards.... the other 4 cards I have settled

[liz417]

I now owe 24k on 3 cards.... the other 4 cards I have settled

Just curious, what made you settle instead of filing for BK? You most likely will have to pay taxes on the forgiven debt. You will receive a 1099/

Good Luck!