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Veteran, Gambling and bankruptcy

Discussion in 'Bankruptcy Law' started by MajinVegeta, Feb 5, 2022.

  1. MajinVegeta

    MajinVegeta Law Topic Starter New Member

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    Good Evening,

    Little back story, I filed chapter 7 bankruptcy back in 2012 and it was discharged without an issue. Last year I hit a slot machine and after deducting losses I have to pay 30k to the IRS. Since the start of the new year I have been doing an online casino which I feel is completely rigged and have taken out loans up to 120k. My wife and I own our vehicles outright along with a motorcycle. We have a joint living situation with a total of 4 people on the mortgage and the title to our house. The house has 600k in equity in it.

    My annual income is 90k plus 40k from VA disability. The other 2 owners of the home have terminal illnesses so I don’t imagine they will be around very long to cover their part of the mortgage. With these loans and credit cards I’m in debt 140-160k and will really have an issue making the payments for longer than 6 months. Since I just incurred all this debt I’m afraid that it will be looked at as fraud if I file immediately.

    All the debt is in my name and is unsecured. How will filing chapter 7 affect my house and my living companions? Is there a way to file and keep the home + cars? Thanks in advance!
  2. army judge

    army judge Super Moderator

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    First of all, whatever I type, VERIFY it by chatting with a bankruptcy attorney near you.

    You can also verify it by going to any US Bankruptcy Court site, such as this one:

    Filing a Chapter 7 Case - Effective 12-01-2020 | Southern District of Florida | United States Bankruptcy Court

    A person can file more than one bankruptcy in her/his lifetime.

    Your status as a veteran or even my status as a 35 year army retiree has NOTHING to do with getting debts discharged.

    How many times depends on how long it's been since your last bankruptcy case and what type of bankruptcy you filed.

    I'll break it down for you.

    You say you last filed a Chapter 7 BK in 2012.

    A Chapter 7 bankruptcy eliminates most debt, including credit card debt, without requiring repayment of any kind. Instead of a repayment plan, the Chapter 7 bankruptcy process liquidates your non-exempt assets to partially repay your debts, if that is feasible regarding your assets.

    Theoretically there is actually no limit on the number of times you can file for bankruptcy.

    Under Title 11 Section §727 of the U.S. Code, you must wait eight years from the day a Chapter 7 bankruptcy was filed to file another one and receive a discharge.

    Theoretically there may NOT be a legal limit on how many times you can file for bankruptcy, but the court will take a good look at why you are filing for a subsequent bankruptcy.

    The U.S. Courts explain: “A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial ‘fresh start’ from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a 1934 decision: ‘It gives to the honest but unfortunate debtor … a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt.’”

    If you have filed for bankruptcy multiple times, the courts might exercise a greater degree of scrutiny when assessing your financial situation.

    That doesn't mean you'll be scrutinized, but that might be a possibility. Generally speaking, extra scrutiny, other than the time limit test, is rarely exercised. That, however, is my observation, NOT a scientific study.

    Okay, these websites might be useful to you:

    How to File Bankruptcy in Spring Hill, FL for Free (2022)

    This is for "pro se" filers":

    Filing a Chapter 7 Case - Effective 12-01-2020 | Southern District of Florida | United States Bankruptcy Court

    Good luck, and if I were you, I'd avoid ALL online gambling sites.

    You're right, most GAMBLING online sites are unregulated (or lightly regulated).
    Many of them are operating OFFSHORE.
    That makes RIGGING them very easy!
    Save your money, don't gamble at any online gambling sites.
    Heck, gambling in person is a risky proposition, too.
    Your testimonial bares that out, mate.
    Gamble only money YOU can AFFORD to lose.
    Those casinos were built using money lost by men and women who worked very hard to acquire it.
    Red Kayak likes this.
  3. Red Kayak

    Red Kayak Well-Known Member

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    Please look up gamblers anonymous. Gamblers Anonymous

    In addition to unravelling your current situation, you need to find a way of avoiding a threepeat.
    army judge, justblue and stealthy1 like this.
  4. stealthy1

    stealthy1 Active Member

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    And a divorce.
    Red Kayak, army judge and justblue like this.
  5. despritfreya

    despritfreya Active Member

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    I agree with the above post.

    The first thing is to get healthy by taking control of the illness that is dominating your life.

    The second thing is to find a good bankruptcy attorney in your area. You have too many issues for any Internet forum to properly address. Those issues include, but are not limited to, the following:

    1. Annual income of 90k.
    2. $30k owed to the IRS - what about State taxes?
    3. House equity of 600k with 4 people on title. Can you exempt the equity? Will a Chapter 7 Trustee force a sale of the property? I note you are in Florida so this may not be an issue.
    4. Debt totals 140-160k.

    Initial consultations are typically free or very low cost. You need to talk to one, two or three (or more) different attorneys in your area.

    army judge likes this.
  6. Disabled Vet

    Disabled Vet Well-Known Member

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    You have a serious problem.... You should seek help for it. You being a veteran has zero to do with you being stupid with your life choices. You are going to need a lawyer to get you out of this mess. You are correct in one area. Online gambling are rigged in favor of the site owner. Heck, gambling is always in favor of the owners. All that money you have blown could of provided a better life for you and your loved ones
    Red Kayak and army judge like this.
  7. MajinVegeta

    MajinVegeta Law Topic Starter New Member

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    I provided the veteran status due to the HAVEN Act
  8. adjusterjack

    adjusterjack Super Moderator

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    The Haven Act allows you to exclude certain types of income that has to be reported for bankruptcy.

    It has nothing to do with whether or not a debt is dischargeable.

    Haven Act FAQs (justice.gov)
    Red Kayak and justblue like this.

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