I live in Illinois and have a few returned checks written to Casinos are they dischargable in Chapter 7

Your question is whether returned checks and associated fees can be discharged in Chapter 7 bankruptcy. The short answer to your question is that they most likely would be, but the circumstances of each matter will affect that particular outcome.

In Illinois a check given to induce services, goods, or credit that is subsequently returned due to non-sufficient funds (NSF) may be evidence of the check writer's intent to get something for nothing - an offense classified not only as civil fraud but as a criminal offense.

If the casino you mentioned in your question chooses to pursue civil fraud damages or criminal restitution, it may be able to secure a nondischargeable judgment against you. Accordingly, I recommend you consult an Attorney knowledgeable in this area and find out if your circumstances put you at risk.

I hope this information has been helpful. Feel free to contact us if we can be of further assistance.

The previous attorney response was right on target. This answer is merely to add to it.

You should be especially careful about filing a chapter 7 if you owe debts to casinos. As a business, casinos worry about taking bad checks and letting customers gamble on credit. They know that sometimes those debts will be uncollectible, and they accept that as a business risk. Generally, they'll try self collection and collection agencies, and they might, after a time, sell the debt to a third-party debt collector, which is basically a type of collection agency.

What casinos are especially concerned with though is people that borrow money with no intent to pay it back. When you file bankruptcy, all of your creditors get a notice, so that they will know to stop trying to collect from you and so they can participate in the bankruptcy process. For a casino, that notice might start the gears rolling into an investigation as to whether they should take other actions against you, like filing a lawsuit (generally, in your bankruptcy, and called an adversary proceeding).

This is not to suggest that you had a bad intent or that many or most bankruptcy debtors have bad intent. But it is important to realize that filing a bankruptcy case may be a red flag to the casino that they should focus their collection efforts on you, and that may be very detrimental to your financial interests.

Of course, there are a variety of factors that may make bankruptcy totally appropriate, even though you owe a debt to a casino. An attorney can assist you in deciding on the appropriate course of action.


Hope this helps.

















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