Gambling Debt and Bankruptcy Options
What Happens to My Gambling Debt in Bankruptcy
If you have incurred excessive gambling debt and want to file for bankruptcy, you need to consult a lawyer to find out your bankruptcy legal options. Gambling debt is considered as unsecured debt but there are situations where these debts can be a bit complicated. For the debt to be completely eliminated you will have to file a Chapter 7 bankruptcy.
But to qualify for a Chapter 7 bankruptcy you must pass the means test. Even if you pass the test, you may not get to file a Chapter 7 if your gambling debt is due to fraud or misrepresentation.
History of Gambling in Texas
Texas has a long history of gambling, which is mostly dominated by poker. In fact, the card game of poker called “Texas hold ‘em” originated in the town of Robstown, Texas, in the early 1900s. But the best poker players from Texas still had to do their gambling in Las Vegas and Atlantic City.
Las Vegas and Atlantic City used to be the primary locations for gambling but now gambling is available everywhere. Gambling is available on the internet, lotteries, horse racing, casinos, offshore and off-rack betting and so on. There are also illegal forms of gambling in private clubs & casinos and via bookmarkers.
In Texas, legal regulated gambling primarily involves lottery and horse racing. There are situations where playing poker in private is allowed. But generally gambling is illegal in Texas. For example, sports betting, roulette, black jack, slot machines, promotion of gambling and other unregulated gambling is illegal in Texas.
Most Texans that find themselves in debt because of gambling can eliminate those debts in their bankruptcies. They can eliminate debts that arise from credit cards, casino credit and casino markers.
Cash Advances from Credit Cards
Gamblers that take cash advances from their credit cards in Casinos run the risk of carrying large amounts of debt if they lose. This means that the loser has to repay the debt with a very high interest rate. There are gamblers that borrow from one credit card to pay another in the hope that they will win eventually, but this often turns into a cycle that leads to complete financial ruin for the gambler.
Using Casino Credit
Casinos don’t charge interest for the use of their funds but casino credit is not necessarily interest free. It is a convenient way for gamblers to game without having to carry cash. With casino credit the casino determines the amount of money they will lend you for a short period of time. The Casino determines the amount they will lend you based on number of things such as your FICO scores and more.
Casino credit is considered similar to an unsecured signature loan in a bankruptcy context. In most cases, casino credit is dischargeable.
There are other debts incurred for gambling purposes. They include debts such as casino markers, pawn shop loans, car title loans, payday loans and signature loans. Your gambling debt can be discharged based on the facts of a particular case, time frame, and whether the debts are secured or unsecured.