• Home
  • Bankruptcy in Brief
  • ABC’s of Bankruptcy
  • Considering Bankruptcy
  • True Stories
  • Chapter 13
  • Blog
  • About
  • TOC

Northern California Bankruptcy Lawyer

On The Bankruptcy Soapbox

The Soap Box
  • How bankruptcy works
  • Mortgage Matters
  • Consumer Rights
  • You & Your Lawyer
  • Small Business
  • Family Law

What happens in Vegas…

By Cathy Moran

gambling debts

May make you a felon.

Funny, the Las Vegas PR doesn’t mention criminal prosecution for unpaid gambling markers.

Yet Nevada treats gambling markers like negotiable instruments (i.e. checks).  Failure to satisfy a marker within 30 days can lead to criminal charges.

Gambling debts gone in bankruptcy

Most bankruptcy courts have held that gambling debts are dischargeable in bankruptcy, since everyone who gambles expects to beat the odds and win.

So, there is no intent to defraud within the meaning of §523 of the Bankruptcy Code.

Crimes not forgiven in bankruptcy

But in the last couple of months, two of my bankruptcy clients whose bankruptcies successfully discharged gambling debts, have been contacted by the Clark County DA’s office with respect to criminal prosecution.

Of course, what the county is trying to do is to pressure the gamblers into a restitution order rather than jail time.

Be forewarned if a jaunt to Vegas beckons.

Image courtesy of kaloozer.

More from the Soapbox

  • Couple Beats Big Banks Who Ignored Bankruptcy DischargeCouple Beats Big Banks Who Ignored Bankruptcy Discharge
  • Time Running Out On Dynamite Business Reorganization OpportunityTime Running Out On Dynamite Business Reorganization Opportunity
  • Pay Off Credit Cards Without Interest:  Bankruptcy For The SolventPay Off Credit Cards Without Interest: Bankruptcy For The Solvent
  • 3 Things That Prevent You From Getting Out Of Debt3 Things That Prevent You From Getting Out Of Debt
  • Step By Step Guide To Business ShutdownStep By Step Guide To Business Shutdown

Filed Under: How bankruptcy works

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Comments

  1. Gerald McNally says

    January 23, 2012 at 12:23 pm

    There’s a constitutional conflict between the full faith and credit clause, and the integrity of Title 11 cases. What shoud tip the scale is that the amount sought by the Clark County DA goes to pay the casino as “restiatution”, a perversion of the concept. The Clark County DA Iwth shom I’ve dealt)should be cited for v8olation of the automatic stay.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

The Biggest Lie About Bankruptcy

Read anything about Chapter 7 and you get, "Your possessions are sold in Chapter 7 bankruptcy." That is, flat out, the biggest lie about bankruptcy. It's a liquidation proceeding and your stuff will be sold to pay creditors, the lie goes on. No wonder people are scared off from getting relief from debts they … Read more

More Posts from this Category

643 Bair Island Road
Suite 403
Redwood City, CA 94063
Phone: (650) 694-4700
Phone: (650) 368-4700

Categories

All content copyright © Moran Law Group. All rights reserved.