Losing money is a natural part of gambling, and if you are sure that there will be a chance to win the money back and then some, it can be part of the fun. If you have ever used the proceeds from gambling to pay your bills, you are not alone. So many people rely on legal and marginally legal forms of gambling as a source of income that the federal government has even issued laws on the legal status of gambling proceeds and losses. The new legislation, colloquially known as the “Big Beautiful Bill,” even contains a provision that 90 percent of a person’s gambling losses count as tax-deductible business expenses, while ten percent of the money counts as taxable income. This implies that gambling debts are just another business expense, and not only for professional poker players. It makes sense to see it that way, since in today’s economy, your chances of breaking even if you get your money from a regular job are not that much better than if you get your money from gambling. Gambling is not just another job, though. You don’t lose the trust of your family and friends by working in a supermarket and getting paid chump change. If you have recently sought treatment for gambling addiction and are ready to rebuild your finances, contact an Oakland chapter 7 bankruptcy lawyer.

Finding a New Normal

One of the hardest things about quitting gambling is that, unlike when you are trying to cut alcohol or cigarettes out of your life, money and financial decisions remain a daily stressor. In the beginning, you may need to disconnect from decisions about spending by adding a family member to your bank account, having your paychecks from work direct deposited, making a budget, and letting your trusted family member be the one to handle the day-to-day expenditures, such as by letting him or her do the grocery shopping.

In other words, don’t start trying to rebuild your creditworthiness immediately. First, get used to getting through the day. Every time you get through another day of honest interactions with your family, it is a win. Go to work, come home, and have a normal day. The rest will follow.

Discharging Your Debts in Bankruptcy

Many of the debts you incurred while gambling are eligible for discharge in bankruptcy court. This includes credit card debts and personal loans. Court-ordered debts such as alimony and child support are not eligible for discharge, but by discharging your other debts, you can free up money to pay them. Filing for Chapter 7 bankruptcy is the fastest way to do this. Most applicants can complete their Chapter 7 case without liquidating any assets.

Contact the Law Office of Melanie Tavare About Discharging Your Gambling Debts

A debt relief lawyer can help you get a financial reset by filing for Chapter 7 bankruptcy protection after problem gambling ruined your finances. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.