Minneapolis Bankruptcy Attorneys at Walker & Walker Law Offices
Bankruptcy is a powerful weapon. It can help you avoid creditors and give you a new financial start. Most importantly, it may wipe out your debts.
You’ll generally devote your disposable income to paying off your bills. The court will discharge your remaining debt if you complete the plan and pay it off in five years.
In most cases, you keep everything you own and the debts all go away completely. You don’t have to set up a payment plan and all loans stop the negative credit reporting.
Understand How Bankruptcy Works
When you file for bankruptcy, all your debts are lumped into one category: unsecured. Your creditors cannot force you to sell assets to repay your debt. However, unsecured debts are not always discharged in bankruptcy. To qualify for a discharge, you must file bankruptcy within a specific time frame and pass a means test. Walker and Walker is very careful to file your case at the right time and make sure you pass the Means Test.
There is a rumor that gambling debts don’t go away in bankruptcy, but this is UNTRUE. Bankruptcy works on gambling debts and also on money borrowed to gamble. This is because gambling debts are considered general dischargeable debts. Credit card debt, medical bills, and other essential debts are also discharged in bankruptcy. If you are struggling with gambling debt, then we can help! After divorce and medical bills, gambling debts are one of the most common reasons to file bankruptcy.
What Is Gambling Debt?
The term “gambling debt” refers to any debt incurred. In other words, the money owed to a person or establishment you have gambled is a casino, bookmaker, or another organization or individual, or loan company where the loan money was used to gamble. For example, if you take a personal loan from a credit union or online loan company like lending club, then these are gambling loans and will be discharged in bankruptcy.
It is also possible to borrow money by taking out a personal loan or an overdraft and then spend the funds on gambling. Eager gamblers who have exhausted all other options might resort to this method. Alternatively, they could miss mortgage, loan, credit card, and bill payments after diverting funds into gambling. It is best to look at bankruptcy before missing mortgage or car payments. Sometimes the very process of filing bankruptcy is enough to break a gambling addiction because bankruptcy has lots of useful safeguards in it like 2 online classes on budgeting and personal finance.
How To Handle Gambling Debts?
Secured or unsecured gambling debts exist. If you took out personal loans to wager, the money is unsecured. It can also be forgiven.
If you used your home equity, vehicle equity, or another asset as collateral for a loan and then gambled with the money, the debt is secured. If the lender is unable to sell the collateral, it has the option of taking it as payment for the debt. Other creditors (such as your home or automobile loan provider) may seize and convert your obligation to unsecured debt if other lenders still retain liens on the property. Bankruptcy STOPS lenders from doing things like this.
You should be able to obtain a discharge of your unsecured gambling debt with the aid of an experienced lawyer. The lender must win an adversary proceeding to stop the discharge of your gaming debt. That implies the lender must show that you borrowed money without intending to pay it back. It’s challenging to make this case. Walker and Walker knows how to file your case in such a way that the lender or casino can’t win an adversary proceeding against.
Consider consulting a professional for assistance with your case. First and foremost, seeking expert aid will assist you in quitting gambling right now and prevent you from getting hooked again. Second, it will demonstrate that you are not planning to rack up more gambling debt as soon as your old debts are paid off in bankruptcy. Bankruptcy can remove your gaming obligations and provide you with a new beginning by demonstrating good faith on a small display.
No, you cannot file for bankruptcy on gambling debts in Minnesota.
Gambling debts are considered unsecured, meaning they are not tied to any particular asset. If you want to file for bankruptcy, your gambling debts will be discharged, and we can also include any other personal loans, credit cards, or medical bills that you have.