Bankrolls and Bankruptcy

[Dark Force Rising]

No malice intended with the "no more kids" remark. Congrats! [img]/images/graemlins/smile.gif[/img] It just got me thinking about a local story concerning some dirt poor couple hell bent on having kids. After the in-vitro they had five-leaving the taxpayer to pick up the tab. Big diff between willfully screwing the public and being in an impossible situation.

Oh,and don't feel bad when someones portfolio,which depends on the bank burying you,takes an imperceptible hit.

[manisteed]

A couple comments:

It sounds, first of all, like you did the right thing and talked to a professional. Hopefully he/she was a pro, because I can think of any number of situations under which you'd be able to keep your bankroll in bankruptcy WITHOUT having to conceal it. Which is incidentally a federal crime with potential consequences of a $500,000 fine and up to five years (oh, and you lose the benefit of the bankruptcy, too).

You haven't really provided a lot of information, but based on what you (I think) said, it sounds like you'd be looking at a Chapter 13 instead of a Chapter 7 -- you have a good job and you want to catch up on a delinquent mortgage, two factors that may push you into a 13.

Exemptions are relevant to a Chapter 13, but less important. If you've got enough income left over to fund a Chapter 13 payment plan after living expenses, and your creditors will get a certain amount of money, there's no reason why you wouldn't be able to keep your roll, even if it wouldn't be "exempt".

The trickier part, I would think, would be deciding how to show what, if anything, your play would contribute to your living expenses during the time you're in Chapter 13.

Last thought -- do talk to someone who specializes in bankruptcy. Lots of lawyers do some bankruptcy work, but it definitely sounds like it'd be worth it to find someone who knows the little stuff.

[cokehead]

[ QUOTE ]
The bankruptcy laws vary from state to state. There are a few ways around this. I'm sure you've already looked into the differences between chapter 7 and chapter 11. Chapter 11 would give you more flexibility in keeping the money.

[/ QUOTE ]

Not trying to be mean here, but bankruptcy law is 99% percent federal law, so the difference between states is basically nothing.

Also, I believe you mean Chapter 13 instead of 11 (Chapter 11 is for corporate reorganizations). Chapter 7 is basically a liquidation of your assets and then they distribute it to your creditors and then your debt is discharged, even though you most likely don't pay it all off. In a Chapter 13, you still pay off all of your debt, but in a new payment plan that must be approved by the court. Kinda like a big extension on paying your debts. It's possible to keep all of your stuff in a Chapter 13, but obviously if you will never be able to pay it off (within reason) then Chapter 7 is the way to go.

[BigBaitsim (milo)]

Lawyers make money off your filing, but make nothing from you going to a non-profit like Consumer Credit Counseling and making arrangements. CCC can be cery helpful and can often get concessions from creditors who would rather work with them then get nothing when you file. Lawyers are hardly disinterested third parties. Good lawyers (my wife included) will advise you wisely. Many will not. Talk to CCC or some other NON-PROFIT credit counseling company. Anyone who wants to make you a loan should be avoided (obviously).

Avoid bankruptcy if you can, file it if you must.

[Dave H.]

Any bankruptcy attorney worth his salt should be able to give you some idea regarding what is sheltered and what is not and whether or not you can convert that 5k into something shelterable. Maybe you need some time to do that to make it legal. If so, and you can take that time, then do it.

But first, before you do anything, go to Consumer Credit Counseling and see what they can do with your debt. I will bet they can reduce it drastically if credit card companies are involved. It doesn't cost you anything but a little time to find out and you can save yourself a lot of headaches if you don't have to declare.

[GrannyMae]

all excellent advice.

i'm not sure i agree that there is any need to declare a poker BR that will never be found by the courts, but ethically it is the right thing to do.

i was forced into a medical bankruptcy many years ago. i could have avoided it, but i chose to go for the fresh start. there is no shame in declaring BR. it is there to keep people from having to sink into holes that one can never recover from.

most important, imo, is that you find a great lawyer. mine was "creative", but i never lied under oath nor do i have any regrets.

[lefty rosen]

I would have no problem hiding my online roll, you are 99 percent safe with the roll if you transfer it to a site that you have never played at. I would do it after all it's gambling your not supposed to win. The capitalist system is dog eat dog, I don't like that but that's the way the man has it structured......

[DBowling]

I dont know if anyone has mentioned this yet, but why not keep your 5k bankroll in party poker? I dont see how they could seize it from there.

[BusterStacks]

You need to dismiss ethics immediately. Grab your [censored] and hide it, do you really think if the tables were turned somehow they would afford you the same courtesy? Heck no! Giving up an income source at this point is an unnacceptable option.

On a side note, if you slip one past the goalie again, you need to have the score manually changed by an expert.

[serling]

Certainly he wouldn't *need* to declare his poker bankroll and he could probably get away with it no one the wiser.

But yes ethically, he or anyone contemplating filing should reveal all assets right down to penny stocks and the coins behind the couch cushions.

Besides, it will make you feel better when swearing under oath to the judge.

woodyr -- the sooner you do it, the sooner you can begin rebuilding. If you went the credit consolidation route, not only would your credit still be messed up (this can be as bad as bankruptcy, because it also says to your creditors that you can't pay the bills), but you'd still be saddled with the debt.

serling