Gambling Debts Unenforceable in Bankruptcy Court

In a refreshing and insightful opinion, the Wisconsin Bankruptcy Court determined that gambling debts could not be recovered in a bankruptcy court context. The case is In re Jafari — B.R. —-, 2007 WL 4276535 (Bankr. W.D.Wis. Oct 16, 2007). (Westlaw subscription requred.)

The debtor had incurred debts on gambling markers at a casino in Nevada. The court determined that it was against public policy to enforce debts to gaming institutions.

I have had many clients come in with gambling addiction problems and I think this ruling makes good sense. Such debts should be unenforceable.

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