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  • Can Gambling Debt be addressed by Bankruptcy in California?

    Can Gambling Debt be addressed by Bankruptcy in California?

    If you like gambling, Los Angeles offers you a large number of casinos to choose from. However, gambling can lead to the accumulation of a huge amount of debts. People often choose to get rid of their debts via bankruptcy. During bankruptcy, debts are discharged which effectively makes creditors go away as they cannot harass you to get the payment back. While bankruptcy is an excellent way to get rid of debts, it is important to know that it gets reflected on your credit report. Your bankruptcy appears for up to 10 years on your credit report which may make things a bit difficult if you wish to get new credit.

    The duration of bankruptcy and its discharge depends on the type of bankruptcy filed. While in the case of Chapter 7, debtors surrender all your non-exempt property which is sold off to pay creditors and you get an automatic discharge of any remaining unsecured debts. Under California’s set of exception for bankruptcy, almost all property can be exempted and debtors do not have to give up anything. In the case of Chapter 13, a 3-5 year repayment plan is devised keeping in mind the assets, income, and debts of the filer. After the end of the repayment plan, any unsecured debt (medical bills, personal loan, credit card bills, utility bills, etc.) which remains is discharged. Debts like taxes, student loan debt, and fines owed to the government, child support and alimony are not discharged in bankruptcy.

    Getting gambling debt discharged

    According to Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/, gambling debts are tricky to get rid of when filing for bankruptcy. Though gambling debts meet the criteria of dischargeable debts, the inclusion of them in your bankruptcy raises some valid questions. Both trustee and creditor question the intention of the debtor to pay off gambling debts. It is quite possible that players who incur heavy gambling debt often had plans to file for bankruptcy in order to avoid making repayment.

    To ensure that gambling debts are discharged, you need to make sure that the debt was not made under the false pretense of payment. You need to prove that you intended to repay all debts including gambling debts and that bankruptcy is not your way of conning the system. People often file for bankruptcy in order to avoid paying creditors. This is known as filing “in bad faith”. If you are found to be guilty of this practice, your discharge is denied. Since it is extremely difficult to prove the intentions of bankruptcy filer, other factors are used to assess the intentions of the debtor vis-à-vis the gambling debt.

    Prove good faith to get gambling debts discharged in bankruptcy

    Amongst the various factors considered to test the good faith of a debtor is the use of a marker. A marker is the credit line from casino used by people to fund their gambling. The amount of marker given to a gambler depends on certain factors like their track record at the casino, money in their bank accounts, how the marker is being used, etc. Signing the marker is equivalent to any legally enforceable debt. In case you sign the marker claiming you have funds to repay the debt but later declare bankruptcy, then the said debt is considered to be borrowed in bad faith. If the court sees that the debt is made in bad faith then it is not discharged. However, if there were funds in your account to repay the marker but due to other problems like unexpected heavy medical bills, you were left with no option except bankruptcy, then it is a case of good faith.

    Nothing shows your intent as repent. If you seek professional counseling, have stopped gambling and had even made a few payments to pay off the debt, then such actions show that you were making efforts to pay off the debt. This represents that the debt was made in good faith.

    Another factor which the court examines is the timing of the debt. If the duration between incurring the debt and filing of bankruptcy is long, there are fewer chances of the debt being made in bad faith. A debt incurred a couple of weeks before filing for bankruptcy is much more suspicious than that taken 6 months or prior. If you had made some payments in the allotted timeframe between acquiring the debt and filing for bankruptcy, it shows your intent. The time frame for paying back markers depends on the amount owed. Marker of less than $1,000 needs to be paid within 7 days; those between $1,001 and $5,000 in 14 days. If the marker is above $5,000, you get 45 days to repay the money. If you fail to make a payment on the debt, then your intentions seem dubious.

    Despite the fact that creditors view gambling debt suspiciously, judges are more lenient towards them, probably because gambling is a legal activity and therefore debts so acquired should be treated in a similar fashion. If the debt was made in good faith then you can easily get them discharged when you file for bankruptcy in California. However, you need the help of an expert bankruptcy attorney to prove your case. In case you haven’t hired one, call 888-297-6203 to consult with some of the best legal minds.


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    • Can Bankruptcy Assist California Seniors?

      Can Bankruptcy Assist California Seniors?

      Anyone can find themselves in debt considering that it is almost impossible to survive without credit cards. Accumulated bills including those of emergency medical charges, student loan, car loan, mortgage, etc. can pile up with time, making it almost impossible to survive without declaring bankruptcy. Senior citizens these days have a longer life expectancy which adds up to financial woes. Getting a job at their age is nearly impossible and medical bills adding to the already shooting debt leads them in a never-ending cycle of debt. This often causes them to be harassed by creditors and live with a worry of leaving their kids and grandkids a debt-laden inheritance. It is important to take legal assistance if you are struggling with debt say Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/.

      Debt relief for seniors

      Filing for bankruptcy is the best option available for seniors who are struggling with debts. Individual consumers can choose to file under Chapter 7 or Chapter 13 depending on your income and assets. Under Chapter 7 bankruptcy, your assets are separated into an exempt and non-exempt category, where the non-exempt property is sold off to pay creditors. According to California’s bankruptcy exemptions, nearly all assets of the debtor are exempted, thereby protected. Thus, at the end of Chapter 7 bankruptcy your unsecured debts like credit card bills, medical bills, etc. are discharged. It is important to understand that people with exceptionally low income only can manage to qualify for Chapter 7 bankruptcy. For those, who are unable to pass the “means test”, Chapter 13 is the next option available.

      As per Chapter 13 bankruptcy, a repayment plan is devised depending on your income and assets. The debtor makes payment for a 3-5 year period after which any remaining debt is discharged. Filing for bankruptcy provides the debtor with the benefit of the automatic stay which prevents any collection action by creditors. Majority of unsecured debts including personal loan, bills (medical and credit card), etc. is discharged after bankruptcy. However, some debts like a student loan, child and spousal support and any taxes assimilated in the three years prior to a bankruptcy filing cannot be discharged.

      Chapter 7 bankruptcy

      If you are able to pass the “means test” and qualify for Chapter 7 bankruptcy, you are able to protect almost all your assets including retirement account. This is so because federal law keeps pensions, 401(k)s, social security benefits and some profit sharing plan safe from creditors during bankruptcy. All of these assets, to the tune of 41.245 million are safe from creditors.

      Another major concern of debtors is for their home. The California homestead exemption ensures that your property is protected. California offers 2 sets of exemptions during bankruptcy. You can consult your bankruptcy lawyer to find out which of the two exemption works best for your property. These exceptions cover your equity in the home. If your equity is less than the exemption, your home is safe from creditors. Single, non-disabled senior citizen of 65 years can have property exemption up to $75,000 under System 1 bankruptcy exemptions of California. Seniors above the age of 65 can protect equity up to $175,000. Under California System 2 bankruptcy exemptions, you can protect up to $25,575 of your equity in the home. This exemption can be used for residential property and can cover assets like apartment, boat, condo, home or a stock cooperative.

      Seniors who are able to successfully file for Chapter 7 bankruptcy can save all their important assets while getting a discharge of their unsecured debts. This bankruptcy chapter is ideal also for those who don’t have any assets. At the end of your bankruptcy and your debts are discharged and you either have to pay a small amount or none at all to your creditors.

      Chapter 13 bankruptcy

      People who fail to qualify for Chapter 7 bankruptcy have the option of filing under Chapter 13. In this case, a repayment plan is devised according to your income. Unlike Chapter 7 you are not required to surrender any assets in this case. Chapter 13 bankruptcy is preferred over Chapter 7 if you wish to protect all your assets which are not covered under exemptions. After the end of the repayment plan, all remaining unsecured debts are discharged.

      Why do people fear bankruptcy?

      There is a stigma attached to bankruptcy which makes people avoid it despite it being the best legal option available to deal with insurmountable debts. As debt accumulation does not depend on the individual’s age, many senior citizens also find themselves grappling alone with debts. Since they are nervous about the consequences, they often delay filing for bankruptcy. If you require professional assistance regarding unmanageable debts, call 888-297-6203 to speak with expert bankruptcy lawyers.

      It has been observed that people over 65 years have nearly 50% more debt than people of another age group. Misconceptions like you will be dragged to bankruptcy court if you file for bankruptcy also add fuel to fire. Bankruptcy filing involves just a minor hearing which takes place between bankruptcy trustee, debtor, and their attorney; creditors may or may not attend the hearing. In fact, the 341 hearing is less stressful than constantly handling or dodging creditor’s harassing calls. It is important to weigh all your options before filing for bankruptcy. Consulting with an expert bankruptcy attorney opens all options before you to tackle the huge amount of debt.