by Adam Mack, J.D.
It’s fairly common for people who have suffered major losses, especially uninsured losses, to need to file bankruptcy. I’ve helped people who have lost personal belongings, vehicles, and even homes to fire, theft, or other catastrophes. As if suffering those losses weren’t bad enough, the assets that were lost, stolen, or destroyed were often secured, meaning my clients still owed money for loans against those assets. They were being hounded by creditors to make payments against cars, homes, and other things that they no longer had. Fortunately, in a bankruptcy those loans can be discharged along with other debts. Even past gambling debts can be discharged.
I need to include here a warning for gamblers, though. Gambling of any kind is strictly prohibited for anyone making payments under a chapter 13 plan, and the courts are diligent about this. If you have (or even suspect you have) a gambling problem, seek professional help before filing bankruptcy. If you gamble while in a chapter 13 plan and get caught, your bankruptcy will likely be dismissed and you could be held liable for all your debts again, among other penalties you might face. It’s simply not worth it.
If you’ve suffered a major financial loss, if you’re being hounded by creditors for loans against things you no longer have, or if you’re simply overwhelmed by debt, consider calling a Kansas bankruptcy lawyer today.