If they were from your wages, checking account or savings, that could be a problem because the bankruptcy Trustee assigned to your case could press the issue that the money lost gambling should have gone to creditors instead. In bankruptcy, the key issue is the source of funds that you used to fuel the gambling. Losing at a weekly poker game is another matter since it’s tougher to document. This woman was gambling online through a website, so can easily use her credit card statements as evidence of the expense and loss. So the good news is, for this advice-seeking consumer, she can deduct her gambling losses on her tax return so long as she itemizes deductions. How does gambling affect your finances for taxes and bankruptcy?įirst of all, the government – including the IRS and bankruptcy courts – recognize gambling losses and income. Below is a look at how gambling affects your odds of successfully filing bankruptcy. The reader asked what would happen if she wanted to file bankruptcy for her medical bills in light of her losing money gambling online in an attempt to earn cash to pay off her debts. Boltz on a question about bankruptcy and gambling. One of Slate’s money experts, Helaine Olen, consulted Mr. Orcutt, recently served as an expert for on a bankruptcy matter. How does gambling affect your finances in bankruptcy?Įd Boltz, a leading bankruptcy attorney at the law offices of John T.
