lottery ticket

[sipps]

I filed chp 7 Ohioon 10/11/2005, discharged on 02/13/2006. My dad bought me a lottery scratch off as a celebratory gift. Well, It's worth $17,000! Can I go throuhg the process of cashing it without the courts taking it?

[SinkingFast]

I don't think you wanna cash it immediately.

How long do you have to cash that ticket???

In Ch 7, the Trustee can take windfalls, lottery winnings, inheritances, etc., for up to 180 days.

I don't know if that's 180 days after filing, after discharge, after close.

[Minnymouth]

Thats 180 days after "closing of case"....... and in fact they can go a year if they really want too...

Course I personally don't know anything about your lottery ticket, but if it was mine - I'd check to see how long I can go before it has to be cashed in......

In fact since Dad bought the ticket, let Dad cash it in!!!!

I'm sure dear ole Dad might want to give you a few gifts off and on over the next year or so......... as long as they are under $9,999.00.....

[SinkingFast]

Yep! Dad would be safest to cash it for you. Someone you can trust that you know you'll see the money.

Congrats!!

[FilingOnMyOwn]

Yup. Give him the ticket. He cashes, pays taxes, keeps a cut for himself, and gives you a large gift

[so-beyond-broke]

Let Dad Cash it

Most lotteries will let you sit on it for up to a year and you could still claim it. That's how the Mega Millions and NY Lottery games work here in NY. I don't know how that will work for a scratch off ticket.

Another thing to consider is whoever you get to cash the ticket will have to pay taxes on that lottery earning of $17,000 and this definetely is something that the IRS will find out about

Congrats on your windfall! Use it wisely to begin a new life!

sbb

[SinkingFast]

You can figure about $3500 to $4000 for taxes. But that still leaves a nice little bonus to come out of BK with!

[thelitman]

I thought they could only take the money if you won it before bankrutpcy? I thought anything you got after did not matter? Oh well I guess I could be wrong.

But let me ask you this question.

lets say you filled Bankruptcy and it was closed 1 week ago. Then you bought a lottery ticket and won the state lottery for 1 million dollars, if the trustee could infact come back and take some money even though it was after the bankruptcy. How much could he take? If all your debt that you had was $73,000 could he only take that amount or could he take more? (no I did not win the lottery this is just a question I have always had)

[SinkingFast]

I thought they could only take the money if you won it before bankrutpcy? I thought anything you got after did not matter? Oh well I guess I could be wrong.

But let me ask you this question.

lets say you filled Bankruptcy and it was closed 1 week ago. Then you bought a lottery ticket and won the state lottery for 1 million dollars, if the trustee could infact come back and take some money even though it was after the bankruptcy. How much could he take? If all your debt that you had was $73,000 could he only take that amount or could he take more? (no I did not win the lottery this is just a question I have always had)

In one word,.............. YES!!!

But the limit will only be to the 100% level of your pre BK debt.

In a Ch 7 BK case, the Trustee can come back on all windfalls for up to 180 days after CLOSE. Not discharge. CLOSE.

You buy a winning lottery ticket, cash in big on the slots at Vegas, have a death in the family where you get an inheritance or life insurance pay-out. You windfall could automatically be siezed by the Trustee for up to 180 days after CLOSE of your BK.

The Trustee can even petition to reopen your BK for up to ONE YEAR after CLOSE if they choose to.

So, you're truly not in the clear, as far as the Trustee and Court is concerned, for over a year after your Ch 7 is closed.

[aa06a47]

I filed chp 7 Ohioon 10/11/2005, discharged on 02/13/2006. My dad bought me a lottery scratch off as a celebratory gift. Well, It's worth $17,000! Can I go throuhg the process of cashing it without the courts taking it?

No, the courts will take it. Have your dad cash it in for you. Keep everything after taxes and have him give you the money in cash. Don't deposit it, don't do anything with it for at least a year after your case is closed. (Reason I say don't deposit it is that banks have to report to the IRS any cash deposits I believe greater than 10k...that will send up a flag, especially since they know you filed BK)