Will my gambling losses be a problem in filing chapter 13? - Bankruptcy Law Questions and Answers- LawQA.com

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Will my gambling losses be a problem in filing chapter 13?

I'm having to file Chapter 13 to save my house from foreclosure, I'm scared I will be denied because I have gambling earnings about $80,000 which are loses and I had to claim that my income taxes. I make about $100,000 a year from my job. I tried to get a modification for 2 years incurring back mortgage of $50,000. My house is under water of about $50,000, 2nd mortgage about $65,000, son's student loan $40,000, and other debt about $30,000. I had to bury my mother and paid out about $20,000 because she didn't have any life insurance and I incurred her medical debt because I her power of attorney. I want to keep my house because I have invested in it. Do you think I will have a problem or be denied Chapter 13?

Answer By Dorothy G Bunce
A Fresh Start
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Living in Las Vegas, we see gambling winnings and losses quite often in Chapter 13. If you continue to gamble, and you are lucky, the bankruptcy trustee will expect you to pay more to your creditors. If you continue to gamble and your luck is bad, you may not be able to afford to pay your Trustee and that would mean your Chapter 13 and all its benefits would be lost.

Answer Applies to: Nevada
Replied: 11/30/2015

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The problems you mentioned should not, by themselves, keep you from getting a discharge in Ch. 13. But because there are some problems, I strongly suggest you find a lawyer experienced in bankruptcy issues to advise and represent you. It's almost always worth the investment.

Answer Applies to: Wisconsin
Replied: 11/30/2015

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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You need to see local counsel before you do anything else.

Answer Applies to: California
Replied: 11/27/2015

Answer By Daniel Garner
Garner Law Office
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The gambling losses will not be a problem as long as you can say you have stopped.

Answer Applies to: Oregon
Replied: 11/27/2015

Answer By Michael Johnson
Law Office of Michael Johnson
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No but trustee may monitor future tax returns and if continue to gamble may be problem.

Answer Applies to: Florida
Replied: 11/26/2015

Answer By Ronald K. Nims

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Gambling will not be a problem in filing a Chapter 13. From your description, you might be able to strip the second mortgage.

Answer Applies to: Ohio
Replied: 11/26/2015

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