Bankruptcy and Gambling

by Questions on July 16, 2010

Question:
I met with a trustee and he gave me a questionnaire to fill out before filing for bankruptcy. One question is \”in your own words, what circumstances have caused your financial problem?\”. DO I need to say that I have a gambling addiction, or can I answer more vaguely, that I over-extended myself over time? I have heard that if your bankruptcy is due to gambling then you may be assessed additional penalties.
thanks

Answer:
You cannot be vague about your gambling, you must disclose it as a cause for your financial difficulty. You are correct. Gambling is a reason that your bankruptcy discharge will be opposed. You will be required to appear in court to explain demonstrate that you have stopped gambling and successfully completed gambling counselling.

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