Cash Christmas gifts after 341

[grammaw13]

Am I required to report cash gifts after my 341 prior to discharge? What is the limit on gifts from anyone?

[justbroke]

No. For Chapter 7s your petition is based on the day that you filed. If you receive gifts after that date, they are yours and not property of the Estate. Only a "windfall" -- of certain types, received after filing -- counts as part of your Chapter 7.

Those particular windfalls only include the following: something that you inherited or became entitled to inherit by bequeath or devise within 180 days of filing, and certain marriage-divorce related property settlements. Regardless of what the Internet will tell you, winning the Powerball one day after filing does not put the Powerball winnings into the bankruptcy estate. Now, if you did win a large Powerball jackpot right after filing, the United States Trustee (UST) could, and will likely, move to dismiss for the totality of circumstances. However, you could just take your winnings and change to an asset case, and just pay everyone off. There's one caveat, you couldn't have purchased the ticket prior to filing (because that would create a different scenario).

(Note: I'm talking about Chapter 7s... as Chapter 13s are trickier.)

[grammaw13]

Thank you! I got some nice Christmas cash unexpectedly! I'm going to create a month ahead budget and a savings account.

[vet2019]

No. For Chapter 7s your petition is based on the day that you filed. If you receive gifts after that date, they are yours and not property of the Estate. Only a "windfall" -- of certain types, received after filing -- counts as part of your Chapter 7.

Those particular windfalls only include the following: something that you inherited or became entitled to inherit by bequeath or devise within 180 days of filing, and certain marriage-divorce related property settlements. Regardless of what the Internet will tell you, winning the Powerball one day after filing does not put the Powerball winnings into the bankruptcy estate. Now, if you did win a large Powerball jackpot right after filing, the United States Trustee (UST) could, and will likely, move to dismiss for the totality of circumstances. However, you could just take your winnings and change to an asset case, and just pay everyone off. There's one caveat, you couldn't have purchased the ticket prior to filing (because that would create a different scenario).

(Note: I'm talking about Chapter 7s... as Chapter 13s are trickier.)

When I filed last year, my attorney explicitly told me if I won the lottery (or inherited a large amount) within 6 months I would have to pay back the debts.

[grammaw13]

The trustee did explain that. This is specifically cash received as a Christmas gift. Only 2k. Not a lot by some folks standards but it was nice after squeaking by after paying the attorney.

[justbroke]

(This is for Chapter 7s only)

When I filed last year, my attorney explicitly told me if I won the lottery (or inherited a large amount) within 6 months I would have to pay back the debts.

That's the issue. Inheritances are specifically in the code (one of 3 things) that would trigger this 180 day clause. On the other hand, lottery winnings and the word "windfall" are not used in the bankruptcy code.

Most attorneys will make the blanket statements about lottery tickets within 180 days when it's entirely not the case. The issue is more about what date you purchased the ticket.