Type of Debt
Hi there, I am looking into declaring bankruptcy but I have a question. The majority of my debt is to credit card companies and most of the debt was incurred through cash advances. Will the credit card companies want to know how the money was spent (majority of it was spent on gambling)? If so, will this cause them to oppose the bankruptcy? Will I forced to pay some or all of the money back after the bankruptcy?
Yes, the fact that you may have a gambling problem will affect your bankruptcy – the chief concern will be whether or not you have the problem under control. If you don’t (ie you are likely to simply go out and gamble again) there’s not much point in relieving you of your debts…
You should talk to either a gambling counselor, a credit counselor or a trustee to determine what steps you need to take BEFORE you file for bankruptcy to deal with the gambling issue. When you do file it is likely you will have to appear in Court and explain to a judge what you have done to get your gambling under control.
As long as the gam,bling has been properly dealt with you will be able to use bankruptcy law to obtain relief from the debts, but you must prove that you’ve dealt with the problem first.