what if question?

[freshstart10]

just for kicks and giggles.....say u win mega millions tonight, do u have to give trustee the winning ticket or would you cash it first then pay off the debts. or would he take it payoff debts and give u back the rest?

just curious

[dogbone33]

me too. I would say they would prolly pay off your debts and you keep the rest.

[justbroke]

I would cash it first. Anyhow, I wouldn't tell the Trustee anything. Make all legal and other financial arrangements. Then, after the cash is deposited... I would call the Trustee and ask for a payoff amount. Then issue a cashier's check.

If it was a Chapter 7 and this was after my petition date... it wouldn't matter.

If it was a Chapter 13... then I'd do what I wrote above, and that is to process the winnings anonymously into a Trust Account and then get a payoff quote from the Trustee. Then pay the Trustee.

No... I haven't been here dreaming about doing such a thing.

The key is, the Trustee doesn't really have the statutory authority to garnish. That's why, in a Chapter 13, it's called a Wage Deduction Order and they are particular about not classifying it as a garnishment. The Trustee would need to get a Court Order (an injunction)... but what would that accomplish if you're going to pay it off anyhow?

[freshstart10]

so what if it was a chap 7 and before my petition date? would they take the whole check first and give me leftovers or i cash it and give them what i owe. what if i surrendered house in chap 7? would that be in the payoff?

i know its never going to happen but im just curious

[StartingOver08]

Well, if its before you file then you don't have to file!

[justbroke]

Well, if its before you file then you don't have to file!

Well put.

[keepmine]

http://west.thomson.com/practice/bankruptcy/newsletter/2009/03/04/default.aspx

[freshstart10]

i thought the petition date was the 6 month period after filing date?

[StartingOver08]

i thought the petition date was the 6 month period after filing date?

Nope. The petition date is the filing date. The 6 months everyone refers to is the 6 months BEFORE filing. This is your snapshot in time.

[freshstart10]

ok well then back to my original question if i already filed and had my 341 and it hasnt been six months since filing date in a chapter seven, would i cash ticket or would trustee?

[StartingOver08]

I think Keepmine and JustBroke have it right - if you already filed, had your 341, then the income was received post petition and you would cash the ticket.

Maybe HHM can jump in and clarify lottery winning post petition but pre-180 days after filing date.

[frustrated7]

I WISH I could have this sort of problem!