My house caught fire today

[lrprn]

In fact, I did a search and found a guy that won the Mega Million lottery the day his trustee filed the 'report of no distribution'. The court didn't do anything. Here is the link: http://www.cbsnews.com/stories/2004/...in657133.shtml

This story is premature - here's what happened a month AFTER your story was published by CBS - http://www.thesmokinggun.com/archive/0120051lotto1.html

This guy was hauled back into bankruptcy court by the Justice Department after he ignored a letter from the US Trustee inviting him to volutarily pay back what he owed. They charged him with bk fraud and eventually he ended up having to pay back every penny he owed. Of course what he paid back was a mere drop in the bucket compared to the millions he won, but the courts didn't let him walk as you are suggesting.

And yes, you are correct - lottery winnings and other unexpected financial windfalls aren't included in the actual code 11 USC 541 - http://doney.net/bkcode/11usc0541.htm - which is what Nolo lists, but just because they aren't listed in the code doesn't mean windfalls are 100% safe if they land within the 180 day timeframe while your Ch 7 case is still active. This situation is a perfect example of the exception.

[familyof7]

Thankyou all

[BKOnce]

I want to know what is the cause of that fire? Someone forgot to left the stove on or left!?

[SinkingFast]

I had read about this and could not find it, so I searched again for you.

Here's a link to a story you should read:

http://www.************************/2007/04/10/can-the-chapter-7-trustee-seize-your-home-if-the-homes-value-increased-after-the-bankruptcy-filing/

The circumstances are not exactly the same as yours. Their case was an Asset case and the damage to their home occurred prior to filing. But it's something to consider.

Since the house is an asset of the BK Estate, I **think** you do need to inform the Trustee about the fire. Because your case is still open and active, what happens is really gonna depend on the Trustee.

[ProSefromCA]

This story is premature - here's what happened a month AFTER your story was published by CBS - http://www.thesmokinggun.com/archive/0120051lotto1.html

This guy was hauled back into bankruptcy court by the Justice Department after he ignored a letter from the US Trustee inviting him to volutarily pay back what he owed. They charged him with bk fraud and eventually he ended up having to pay back every penny he owed. Of course what he paid back was a mere drop in the bucket compared to the millions he won, but the courts didn't let him walk as you are suggesting.

And yes, you are correct - lottery winnings and other unexpected financial windfalls aren't included in the actual code 11 USC 541 - http://doney.net/bkcode/11usc0541.htm - which is what Nolo lists, but just because they aren't listed in the code doesn't mean windfalls are 100% safe if they land within the 180 day timeframe while your Ch 7 case is still active. This situation is a perfect example of the exception.

Did the Judge rule to reverse and nullify that filing? That just shows the trustee filed the motion because of the special circumstances, and asked the guy to voluntarily pay off his debts.

The point I was trying to make is that trustees don't have unlimited power over what happens in your life after you file BK. They have to follow the law just like everyone else. Post filing windfalls and new income which doesn't fit the exceptions are not under the control of the trustee. The fire insurance that familyof7 qualifies for is not one of the things listed as an exception to the 180 day rule.

[familyof7]

I had cleaned my kitchen before I left my home and we have thoses burner covers over the burners it is an electric range and because my kitchen is small I often leave items on my stove but the stove is not supposed to be on well while I was cleaning the stove I must have accidently turned one of the burners on while wiping it and I left to run errands came back saw somke but no fire so put water on the stove and took al of the smoldering? items off one by one to put them under cold water in doing so a piece of smoldering oven mit fell on the floor in front of my sink and landed on a rug I did not know it so I turned of the fire alarms and opened the doors to let out smoke and came back in what seemed like 30 minutes later to flames in my kitchen waist high so I left and called 911 they put it out and tore my floor up and cabinets to make sure no hot spots and now the rest of my house has smoke damage all of our belongings are damaged by fire or smoke. the insurance company will fix it an reimburse us for out of pocket expenses for food and shelter stuff like that so we wont get a "settelment" it will just be repairs fixed and reimbursed for our expenses no cash settlement we can even fix it our self through my husbands company but we wont make a gain so is this condsidered a windfall?

[ProSefromCA]

familyof7, the money the insurance company will pay you on your claim I believe will be called an "insurance settlement". I think this is very different from "property settlement" as listed in relation to bankruptcy, where property settlement means the division of property of a married couple.

A windfall is something you get unexpectedly like an inheritance or good luck, like gambling winnings. For example, getting a raise at a job is not really a windfall.

[SinkingFast]

One way to handle it, for the repairs to your house at least, is to have the insurance company direct pay the contractor. That way no money for that part comes directly into or out of your bank acct.

Just a thought for you.

[familyof7]

thank you proseCA:

sinkingfast ,what if they pay my husband under his business name as he may be the contractor doing the repairs