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My attorney did not list my gambling losses within 1 year on my chapter 7 petition? What are the chances of my petition being

San Francisco, CA |

dismissed (just based on this) if the trustee inquires and sees the casino withdrawals listed on my bank statements. I did not win anything. Please give me the raw truth on the likelihood of being dismissed just based on this. It was disclosed to attorney.

Attorney Answers 5

Posted

Why are you not simply calling your lawyer and asking to correct the mistake and amend the omission? The raw truth is that is what you should be doing, rather than asking about the consequences of not doing it.

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2 comments

Shaye Larkin

Shaye Larkin

Posted

I agree with Mr. Riddle 100000%

Frank John Kokoszka

Frank John Kokoszka

Posted

Like Ms. Larkin , I agree with Mr. Riddle. Speak with your attorney about this sooner rather than later.

Posted

Go ahead and file the amendment. Now that you are aware of the error, you need to fix it. If you don't fix it and the trustee finds out about it, they can certainly take action. Whether they will or not is not knowable.

The information provided herein is general information only and not legal advice. The information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with an attorney. It is important to have a consultation with an attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation.

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4 comments

Asker

Posted

my 341 meeting has recently passed. Can I still amend it and not look like I was hiding it? My attorney did not think it should be amended.

Asker

Posted

I did not my use credit cards to gamble.

Shaye Larkin

Shaye Larkin

Posted

If you left out information that was required to be disclosed, in order to avoid committing fraud in your bankruptcy, which can have much more serious consequences than merely dismissal of your case, you need to do the amendment.

Asker

Posted

Thank you for your advice.

Posted

File an amendment to list the gambling debts. Even if you don't, you live in the Ninth CIrcuit which has a great case which covers your situation. In re Beazley. It states that in a no asset case, the fact that you didn't list a creditor who could have been discharged, it doesn't matter. The debt is still discharged. I wont go into the technical legal reasons for the holding. If your case is still open, go ahead and file the amendment. If your case is closed, don't worry about it and rely on Beazley.

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Asker

Posted

I didn't use any credit cards. Just my bank account to withdraw the funds at casino.

Asker

Posted

Does that change your answer?

Posted

In Bankruptcy court it is easy: file amendments to reflect truth and ask them to prepare now for you to sign. Secondly, then..all you do is wait. Discharge will normally be granted..you will see..Nothing else to do so reduce your stress level, file amendment and just wait!

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Shaye Larkin

Shaye Larkin

Posted

I agree with Mr. Granvold

Posted

Inadvertent, immaterial error is unfortunate, but not fatal and can be rectified via amendment. A budget that accommodates significant gambling losses may factor into assessment of debt repayment ability. If you're not an MI6 spy , resplendent in tuxedo, beautiful femme fatale in tow, "compelled" to play Baccarat so you may scope out a super-villain, then gambling isn't a strictly necessary expense. Yet, bankruptcy is about forgiveness, it should not entail condemnation for modest pursuit of a heavily-promoted diversion that is sanctioned by the state. In the event gambling is a damaging addiction, treatment may be sought concurrently with debt relief through bankruptcy. Substantial gambling losses may also beg scrutiny in terms of prepetition preservation of assets.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn’t address all facts & implications of the question; it’s general info, not legal advice to be relied upon and exceptions may apply. It creates no attorney-client relationship; it may be pertinent only to CA and/or its Southern District Bankruptcy Court in San Diego. It’s independent of other answers. It may be time sensitive, as in past the “Use by” date: laws and case law change. Hire a bankruptcy lawyer before acting or refraining from bankruptcy or other legal action.

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1 comment

Robert F Gauss

Robert F Gauss

Posted

Now this is pithy and entertaining, and full of sagacity. File the amendment, if you don't have huge gambiling debts that were put on credit cards or funded by unsecured debt no one will care. If you do , someone may care, but there are legal ways of dealing with that issue as well. What you cannot do is not follow the law by answering questions on the SOFA inaccurately, and then wait for years all stressed out that someone wil find out and you'll lose your discharge. File the amendement and relax.

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