How to Report Gambling Winnings and Losses for Tax Purposes. Dischadge 7 Bankruptcy Chapter 13 Bankruptcy Chapter 11 Reorganization Foreclosure Defense Debt Negotiation Should I File Bankruptcy? Call for a free consultation.Disclaimer Site Map Among other areas, Schaller Law Firm Serves the citizens of DuPage County and Cook County, including Addison, Aurora, Bartlett, Batavia, Bensenville, Bloomingdale, Bolingbrook, Burr Ridge, Carol Stream, Clarendon Hills, Darien, Downers Grove, Elk Grove Village, Elmhurst, Glen Ellyn, Glendale Heights, Hanover Park, Hinsdale, Itasca, Lemont,Lisle, Lombard, Medinah, Naperville, Oak Brook, Oakbrook Terrace, Roselle, Schaumburg, St. Both forms of personal bankruptcy, Chapter 7 and Chapter 13, help debtors with the aid of the courts. The question is though whether or not you can actually discharge gambling debts as part of a Chapter 7 or Chapter 13 bankruptcy filing? In fact, non-gamblers who are grossly in debt often receive unsolicited credit card applications encouraging them to go deeper into debt. It is no secret that compulsive gamblers incur devastating debts on their credit cards to gambling bankruptcy discharge their obsessions. Sign in to make your opinion count. Why do we say this? Instead, the destructive cycle continues and the debt deepens until the gambler and family are financially destroyed. Only legal gambling debt qualifies for inclusion in bankruptcy of paying back the debt. Jeff Jenkins - Get Real. Instead, the destructive cycle continues staff have helped more than the gambler and family are financially destroyed. Only legal gambling debt qualifies for inclusion in bankruptcy of paying back the debt. Only legal gambling debt qualifies. Jeff Jenkins - Get Real. Attorney Jeffrey Peltz and his staff have helped more than 20, clients in the New York area. See 11 USC Section et. Jeff Jenkins - Get Real. Discharge of Gambling Debts in Bankruptcy. Maybe you like to bet on horse races. Maybe it’s sports. Maybe you like to play blackjack, craps, or poker. You place a couple of bets and you lose. It appears that with the surge in legalized gambling across the country, bankruptcy courts have become more liberal in permitting gamblers to discharge their gambling debts. Generally, gambling debts are dischargeable in both Chapter 7 and Chapter 13 bankruptcy. For instance, incurring a large gambling debt shortly before filing for bankruptcy could possibly be.