Have Casino Markers? Here’s How They Could Affect Your Las Vegas Bankruptcy Case 

Las Vegas is a city unique from many others in the United States due to its high concentration of casinos. The bright lights and the action can be fun, but it’s fairly common to see a gambler let their good time get out of control. When this occurs, the patron could be left with a debt known as a casino marker. Financial struggles are likely to stack up as a gambler accrues casino markers. When it all becomes too much, is there anything that can be done about them? Bankruptcy is a long-standing and powerful means of debt relief, with different chapters meant for different financial situations. But casino markers are a unique debt that can be particularly difficult to address. The state of Nevada takes them extremely seriously, and a gambler who doesn’t pay their casino marker can face far more severe consequences than a typical debtor. Read on to learn more about whether you should file for bankruptcy if you have casino marker debt in Las Vegas. To speak with an experienced bankruptcy lawyer about your situation, call 702-370-0155 today. 

Casino Markers Defined

A casino marker is a line of credit that a gambler can use to continue playing instead of using their own cash. It is more convenient than running back and forth from the ATM, but in many ways, far riskier. Casinos can have their own rules surrounding their markers, but most are payable within 30 days with no interest. After those 30 days, the casino will take more aggressive measures to collect the balance owed. They can go straight to the gambler’s bank to retrieve the funds from their bank account. But oftentimes, the gambling patron didn’t pay their casino marker because they didn’t have sufficient funds in their account. This means the funds simply wouldn’t be there if the casino tried to collect them. The next step is for the casino to send its customer a certified letter giving them 10 days to pay the debt. The gambler should make their best efforts to pay the marker, because after the ten days have expired, the casino can take the unpaid marker to the District Attorney. They can send another certified letter giving the individual an additional 10 days to pay the casino marker. If the balance is left unpaid, they may issue a warrant for the gambling patron’s arrest. If the balance is high enough, that person may be charged with a felony. 

Chapter 7 Bankruptcy and Casino Markers

Chapter 7 bankruptcy is the number one most-filed chapter of bankruptcy in Las Vegas and across the country. It can clear unsecured debts, which are those that don’t have an asset attached as collateral. One exception to this is priority debts, or debts designated with a certain status that entitle them to special treatment in collections and bankruptcy. Examples include domestic obligations, recent tax debts, and student loans. An unpaid casino marker can result in criminal charges, but doesn’t become a priority debt until that point. 

So, if someone comes to Las Vegas to gamble and leaves with one or more unpaid casino markers, it could result in criminal charges in less than 2 months. Once the criminal case has been opened, it is too late for that person to file for bankruptcy to deal with the issue and stop the prosecution. But if it hasn’t gotten to this point, a person under these situations could benefit greatly from declaring bankruptcy. Casino markers are an unsecured debt that are eligible for discharge under chapter 7. But if the casino can prove that the debtor used fraud to obtain this line of credit- e.g., they never intended to repay the debt- the casino marker can be excluded from bankruptcy discharge. Casinos are also more likely than financial institutions and other typical debtors to pursue other exceptions during the bankruptcy process, such as filing a motion for relief from the automatic stay. 

A casino marker debt may or may not be dischargeable in chapter 7 bankruptcy, but filing might still help someone struggling to pay their markers if they are juggling other debts as well. For example, a debtor might be losing money paying late fees and interest and barely keeping up with their minimum monthly credit card payments. They might have a vehicle in poor condition that still has a balance remaining on the loan, which could be surrendered in bankruptcy and exchanged for a more reliable and cost-effective vehicle. They could have a wage garnishment, which automatically takes a large chunk of their paychecks to send to one of their creditors. These kinds of factors make it difficult to pay off a casino marker, despite immense pressure due to the possibility of criminal conviction. Chapter 7 bankruptcy can clear other obligations that make it easier to pay off a casino marker that is ineligible for discharge. 

Chapter 13 Bankruptcy and Casino Markers

Debts are treated much differently in chapter 13 bankruptcy than in chapter 7 bankruptcy. Instead of wiping them away, they are, for the most part, repaid in a chapter 13 payment plan. Payment plans last either 3 or 5 years, and must pay off fees, secured debts, and priority debts in full. Whatever is left on the plan will go towards unsecured debts. If a chapter 13 debtor can’t pay off their unsecured debts in full, they will be wiped away at the end of the payment plan if they can pay off their mandatory debts. 

If a gambler has already been prosecuted for an unpaid casino marker and it has become a priority debt, chapter 13 bankruptcy may be one of their best options for debt relief. It will not erase the casino marker like an unsecured debt in chapter 7, but gives the debtor a chance to pay it off while under court protection from the casino and the rest of their creditors. Because it pays off debts that are mandatory in full and unsecured debts as much as the debtor’s finances allow, the debtor should be left with no debt at the end of a chapter 13 bankruptcy case. But this is only if the case is discharged- chapter 13 cases have a high dismissal rate, especially for cases filed without an attorney.

Curious About Bankruptcy and If It Can Clear Your Casino Marker Debt? Get Your Information from an Experienced Las Vegas Bankruptcy Lawyer 

Receiving a notice that you have 30 days to pay a casino marker means you need to act fast. If you don’t have the means to pay the marker, you could be facing time behind bars. But if you file for bankruptcy before the District Attorney has opened a case against you, your casino marker may be eligible for discharge. Filing under a deadline increases the pressure in what may already be a boiling point situation. If you aren’t a seasoned bankruptcy professional, filing bankruptcy on your own could put your bankruptcy and entire financial well-being at stake. See what our Las Vegas Bankruptcy team can do to ensure you have a smooth bankruptcy filing with no risk or obligation. Schedule your free consultation today at 702-370-0155 for more information.