This Debtor Knew When to Fold
When people gamble, they can win. But let’s face it: not often. When they lose, they can lose big. When is a gambler entitled to relief under the Bankruptcy Code? While the answer is not entirely black and white, a February 29 decision out of the Northern District Ohio sheds some light on the issue.
The debtor’s gambling habit started just for fun (with no money) but then, money slipped into the games. The money was followed by credit cards. All of this led to a downward spiral during which time the gambling began to consume the debtor’s life. She visited online gambling sites in the morning before going to work, would come home from work at lunch and gamble, and then do it throughout the evening at the end of her work day. At some point, the debtor realized that it was out of control, and she started seeing a counselor.
After she stopped gambling and was seeing her counselor, she cut back on household expenses. She canceled her home internet service and checked emails only from work. However, by this time she had accrued high balances on her credit card accounts.
Rather than run to bankruptcy court, she attempted to investigate various debt consolidation services, but found that the monthly payments would be more than what she could afford.
