How to File for Bankruptcy on Gambling Debts

Gambling debts can be eliminated, or discharged, through bankruptcy. The debts are treated as unsecured debts, making them eligible for Chapter 7 bankruptcy and Chapter 13 bankruptcy--the two most popular forms of personal bankruptcy according to the Federal Trade Commission. In 2010, the Wall Street Journal reported on a famous--but retired and unemployed--professional basketball player who filed for personal bankruptcy after racking up $1.27 million in gambling debts. All debts must be included in a bankruptcy, meaning that you cannot file on gambling debts alone--unless they are your only debts.

Instructions

1

Get help for your gambling problems to avoid more losses as you prepare to file for bankruptcy. Contact the National Council on Problem Gambling by calling its 24-hour hotline at 800-522-4700.

2

Make an appointment with a nonprofit credit counselor approved for bankruptcy counseling by the U.S. government. Find a certified counselor by checking the website for the U.S. Trustee program found in the Resources section of this article. Tell the counselor you would like formal pre-bankruptcy counseling. Such counseling sessions typically last about 90 minutes, according to the the Federal Trade Commission, and are required for people filing for bankruptcy.

3

Take a complete list of your debts to the meeting with the counselor, including all of your gambling debts. Ask the counselor about the bankruptcy process as she details the pros and cons of filing. As part of the program the counselor is required to suggest alternatives to bankruptcy, such as payment plans. Bankruptcy may, however, be your only solution if your gambling debts are severe.

4

Schedule free consultations with bankruptcy attorneys. Initial consultations are usually free, and you should take advantage by seeing two or three lawyers. Use the consultations to learn which form of bankruptcy is best for your situation.

5

Hire one of the lawyers based on overall experience and on evidence of specific experience handling bankruptcy filings caused by gambling debts.

6

File for bankruptcy by authorizing your attorney to file the necessary paperwork. In 2010, the United States Courts website listed bankruptcy filing fees of $299 for Chapter 7 bankruptcy and $274 for Chapter 13. Attorney fees are additional.