Can I Discharge My Casino Marker Debt With Bankruptcy in Henderson?

Opening up a new line of credit isn’t necessarily a bad thing, because when used responsibly, they can help the user avoid expenses and earn benefits. Some gamblers prefer to use them so they can avoid the inconvenience of carrying cash and paying ATM fees. A casino marker is a line of credit extended by a gambling establishment so that a customer can carry on without running back and forth to the ATM. The gambler must fill out an application before the casino will extend a line of credit. A casino marker is treated like a check, and should be able to be cashed. They usually have a 0% interest rate and are expected to be repaid within 30 days. The casino can draw the funds directly from the customer’s bank account if not repaid. If there are no funds in the account, the marker will be indicated as NSF, or non-sufficient funds. Once a marker is labeled NSF, they should receive a letter giving them 10 more days to pay the funds or face criminal consequences.

The debt from a casino marker doesn’t just go away if the gambler serves jail time and faces other criminal penalties from conviction. In some cases, the casino may pursue repayment of the casino marker through a civil suit, even after the defendant has served time and completed probation. Unlike some gambling debts, casino marker debts are not dischargeable in bankruptcy. However, if the defendant ever moves to a state where there is no criminal statute against failing to pay casino markers, the debt may be dischargeable through bankruptcy in that state.

Debts from gambling are often just the tip of the iceberg in a tenuous financial situation. Even if bankruptcy won’t clear debts from casino markers, they can still erase other debts and make it easier to pay off non-dischargeable debts in time. If you are considering bankruptcy in Henderson, Nevada, and have casino marker debts, you should consult with an experienced bankruptcy lawyer before filing your case. For your free consultation by phone with Henderson Bankruptcy Lawyers, call 702-899-3328.

Defaulting On A Casino Marker

Gambling without sufficient funds in your account to pay for any losses is considered a serious offense in Nevada. Because a casino marker is treated like a check under Nevada law, the consequences of defaulting on a casino marker are similar to those for bouncing a check. Per NRS 205.130, a person who willfully, with an intend to defraud, draws or passes a check or draft to obtain credit extended by any licensing establishment should be subject to criminal penalties. This statute also applies to checks passed to receive money, delivery of other valuable property, services, or the use of property. This offense is a misdemeanor unless the defendant fails to repay $650 or more within 90 days, in which case it is considered a category D felony.

Obtaining a conviction in these types of cases is relatively simple for the prosecution. The only evidence they need to track down are a copy of the original casino marker and copy of NSF-stamped marker after the casino attempted to cash the marker. A conviction under this offense can result in a 1-4 year prison sentence and up to $5,000 in fines and other fees. In Nevada, it is presumed that if the defendant didn’t have the funds in their account to cover their casino marker, there was intent to defraud. It will be up to the defendant to prove there was no intent to defraud, whether that’s by showing an extenuating circumstance like a medical emergency or a natural disaster, displaying a history of repaying debts including casino markers, etc.

Chapter 13 Bankruptcy & Gambling Debt

Chapter 7 bankruptcy is only effective under limited circumstances when a debtor wishes to clear casino markers. They can only be discharged in chapter 7 bankruptcy if their criminal charges from the offense are dismissed or were never brought by the prosecution. Chapter 7 is most useful when clearing bills like credit cards and medical bills, but can’t clear other debts like student loans, child support, secured debts, and more. In addition to only clearing certain types of debts, there are also restrictions on who qualifies to file for chapter 7 bankruptcy, such as income level. For these reasons, chapter 13 bankruptcy can be a better option for someone struggling with a casino marker debt.

Chapter 13 bankruptcy is a payment plan meant for debtors with regular income. It lasts 3 or 5 years, depending on the debtor’s income level. To qualify, the debtor must have enough income to pay off bankruptcy fees, secured debts, and priority debts. The criminal conviction associated with a bad casino marker makes it a priority debt. Unsecured nonpriority debts are paid off as much as the debtor’s income affords and discharged at the end of the payment plan. The debtor is protected from creditors by the automatic stay during their payment plan. The automatic stay stops lawsuits, home foreclosures, repossessions, wage garnishments, and more.

It’s easy to see how filing for chapter 13 is usually a better option than chapter 7 when a debtor has casino marker debt. If you have casino markers, you should attempt to negotiate payment plans with your creditors before it gets to this point. If your creditors don’t wish to participate or you have already been convicted for this offense, chapter 13 provides a court-facilitated payment option with additional protections from the automatic stay. Want to learn more about the process of filing for chapter 13 bankruptcy in response to casino marker debt in Henderson, Nevada? Learn more about your options with your free case evaluation. Schedule your free consultation by calling 702-899-3328.

What Happens To Other Debts In Bankruptcy

If your income isn’t high enough to qualify for chapter 13 bankruptcy, you may be wondering what will happen to other debts in chapter 7 bankruptcy to make it more feasible to pay off a casino marker. Here are some of the most common debts that lead our clients to consider filing for bankruptcy:

Credit Cards: Credit cards have relatively high interest rates, and missing payments can also cause the customer to incur late fees and other penalties. Add in extra credit cards and a debtor may be struggling just to make their minimum monthly payments, much less pay down their balance. Credit cards are unsecured nonpriority debts that can be wiped out by chapter 7 bankruptcy. They can also be cleared in a chapter 13 if the debtor doesn’t have high enough income to pay off this category of debt. However, the debtor should be careful to avoid exceeding pre-bankruptcy spending on luxury purchases and cash advances.
Medical Bills: Medical bills are unsecured nonpriority debts that can be erased by bankruptcy.
Auto loan: An auto loan can’t be discharged if you wish to keep the vehicle attached to the loan. However, if you are driving a vehicle you can’t afford, bankruptcy is your chance to surrender the vehicle and the associated debt.
Mortgage: Like an auto loan, a mortgage is a secured debt that can’t be cleared if you wish to keep the asset. However, there are possibilities in chapter 13 bankruptcy to clear secondary mortgages on your home. Filing for bankruptcy can also stop a home foreclosure.
Student Loans: It is a rare occasion when a bankruptcy filing clears student debt. But the automatic stay from a bankruptcy filing can pause a wage garnishment from student debt and give the debtor an opportunity to pay off some of their educational loans.
Child Support: Child support and spousal support obligations can’t be cleared by bankruptcy. It’s also important to note that filing for chapter 7 bankruptcy won’t stop a child support wage garnishment- only a chapter 13 bankruptcy plan that fully pays a balance in arrears will.
Personal Loans: Personal loans can be discharged by bankruptcy, but it’s important to understand the distinction between personal loans and title loans. When a debtor takes out a title loan, their vehicle becomes a secured asset attached to that debt.

Address Gambling Debts Head-On With Our Henderson Bankruptcy Lawyers

Dealing with any type of debt can be overwhelming, but a casino marker can be especially stressful because of the criminal penalties associated with defaulting. Filing for bankruptcy could provide you with a layer of protection necessary to get your life back on track. Do you want to learn more about the risks and benefits of filing for chapter 7 or chapter 13 bankruptcy in Henderson, Nevada? Schedule your free consultation with an experienced bankruptcy lawyer today by calling 702-899-3328. Don’t hesitate to contact us today!