Can You Declare Bankruptcy for Gambling Debts?

Bitcoin News Today & Gambling News
5 min readApr 8, 2024


Gambling is a tempting process — the promise of earning a large sum of money along with the simplicity of the games makes it easy to fork over significant money. Unfortunately, many end up in serious gambling debt from this process. Is it possible to declare bankruptcy if you find yourself in trouble with gambling debt?

If you’re interested in learning more about whether bankruptcy is a possibility for gambling debts, you’re in the right place. Though it might be overwhelming to be in this situation, there is always hope. Read on to learn more about whether you can declare bankruptcy for gambling debts and possible solutions for getting out of gambling debt.

Is It Possible to Declare Bankruptcy for Gambling Debts?

In the past, bankruptcy typically wasn’t an option for those with gambling debts. However, the past decade or so has shown that gambling continues to be a problem — there are thousands of people in the country who are behind on payments because of gambling. Thus, many courts have opened to the possibility of allowing bankruptcy for gambling debts.

There are two options for declaring bankruptcy for gambling debts: Chapter 7 and Chapter 13. Let’s talk about them.

After exhausting all other options, one might be eligible for Chapter 7 bankruptcy. This selection is perfect for someone who doesn’t have a gambling addiction but can’t handle the accumulated debt. It allows the individual to remove most of their debt but can only be filed every eight years — so addiction needs to be absent.

Another option is Chapter 13 bankruptcy. This selection is ideal for those who can afford to pay off their debts in a payment plan format, allowing you to take responsibility for the payments. It requires a tight budget but will assist with the payment process.

While bankruptcy may seem like the easy way out, it’s important to note that it will destroy your credit score, lowering your ability to buy a home or a car and make big purchases. It is not a decision to be taken lightly.

Related: Where Can You Get Help for a Gambling Addiction?

5 Possible Solutions for Getting Out of Gambling Debt

Bankruptcy might be an option, but there are other ways to handle your gambling debt if you don’t want to get involved in legal ramifications. From working a second job to trying out the snowball method, there are ample selections for the dedicated individual.

Let’s talk more about some possible solutions and alternatives for getting out of gambling debt if you only want to use bankruptcy as a final resort. Although it will take significant work, it’s possible to work your way out of a gambling debt if you can deal with your addiction and push forward.

Working a Second Job

One way to get out of gambling debt is to take on a second job. While this process might take up more of your free time than a bankruptcy, it will also allow you to bring in more money to pay off your gambling debts. A second job will allow faster repayment, leading to more security, and take up some of the time that previously tempted you to gamble.

Common second jobs include working as a:

  • Cashier at a store or restaurant
  • Line cook
  • Dishwasher
  • Janitor
  • Waitress

Many jobs are hiring that will work as a second job. Of course, working a second job isn’t for everyone. Those who are determined, however, will be able to pay off their debts much faster and will have less time to occupy themselves with gambling along the way.

Making a Budget

Consider making a budget to deal with your gambling debts. Note places where you are spending too much and cut down on the excess to open more money to work on paying down your gambling debts. It might require sacrifice, but it will be worth it.

A budget typically involves breaking down various areas of your spending, from the rent or mortgage on your home to the amount you spend on doing fun activities every week. Cutting down where possible, such as in dining out and shopping, will open a world of possibilities for repayment.

Some easy ways to cut back are subscription services that you don’t or rarely use, online shopping, and events or vacations.

Talk With an Expert

Next, think about talking with a financial expert about your debt. They will help you create a plan for paying off the debt and advise you on the next best steps for your situation. An expert can also help you separate your accounts and set up blocks for yourself to prevent certain purchases.

Of course, many experts cost money, so it’s vital to see what you can afford. Many services offer free advice and counseling for those struggling with gambling addiction and debt, so explore your area and see what there is to offer.

Use the Snowball Method

The snowball method means paying off your smallest debts as soon as possible, then moving up the ladder until you pay off the largest debt. This process is practical if you have multiple debts at one time. It will help you tackle them efficiently and with a strategy.

This method is also effective if you have other debts to pay off along with your gambling debts — especially if some of them have interest attached. The snowball requires careful, effective planning, but it will work wonders for those in all types of financial situations.

Utilize Side Hustles

Finally, consider embracing side hustles. Side hustles are like a second job, but they typically don’t take up as much time and bring in slightly less money. You can often have multiple side hustles at once, which might be beneficial for the gambling-oriented individual.

Common side hustles include endeavors like the following:

  • Delivering pizza
  • Selling old items on Etsy
  • Washing cars
  • Driving for Uber

There are ample options available. Some side hustles make more than others, so it’s vital to make choices that will suit your gambling debt. A side hustle will make it simple to pay off your owed money in no time.

Related: Gambling: The Positive and Negative Effects

Final Thoughts

Now that more people than ever have found themselves in gambling debt, bankruptcy through Chapter 7 and Chapter 13 is a possibility for those who need some assistance. However, there are also alternatives if you don’t want to approach the bankruptcy selections.

We hope this information is helpful! Though it might seem overwhelming to land in the center of gambling debt, there is always a way to get out of it. If bankruptcy isn’t an option, consider items like working a second job or using side hustles instead.

You May Also Enjoy: How to Prove Gambling Losses (US Taxes)

This article was brought to you by the Bitcoin SportsBook on MintDice. Originally posted to



Bitcoin News Today & Gambling News

MintDice / / A 100% Provably Fair Bitcoin Casino featuring Bitcoin Dice. Also maintains a cryptocurrency blog.