I asked my attorney if I won the lottery after filing BK 7,(non-consumer) would the lottery winnings go to the trustee & they said NO??? I just read where someone else said their attorney said not to buy any lottery tickets in the next 6 months, is there a different rule when it is non-consumer?
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Not that I am aware of.
I suppose there could be some split of opinion, but in general, so long as the ticket was purchased AFTER the BK was filed, the winnings belong to the debtor, not the bankruptcy.
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LOL, thanks for posting that question ruttie. I too saw the other post about someone's attorney saying not to buy a lottery ticket in the next 6 months...I was confused by that...same with wage increases, promotions, etc.....Originally posted by ruttie View PostChapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11Comment
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Lottery winning issue is fairly cut and dry, so not sure what that attorney is thinking. Now granted, it is very good, conservative advice. After all, if you won $1,000,000 just before the 341 meeting, it is worth it for the trustee to "try" and go after it (making you spend money to keep it), but the few legal opinions on the issue all say, the date of ticket purchase controls the outcome, if before fling BK, BK estate gets money, if after filing, Debtor gets the money.
As for wage increase, promotions, that is more of a grey area and will depend on the specific fact scenario. "In general", an increase in income after filing chapter 7 BK will not affect the BK filing. The issue turns on good faith.
Scenario 1:
Debtor rushes to file BK because he was just informed that he will be promoted in 3 months. That higher income will kick him out of chapter 7. So, debtor files BK.
Outcome: UST has strong case that debtor should be chapter 13. Debtor knew of the increase, intentionally filed ahead of it.
Scenario 2: debtor files Bk, and, out of blue, finds out after the 341 meeting that he is getting a raise.
Outcome: non-issue, no bad faith, and both the raise and knowledge or the raise occurred after filing.Last edited by HHM; 05-26-2011, 01:50 PM.Comment
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Thanks for the information HHM. (I can only hope that I'd have that kind of issue of winning the mega millions....I'd certainly pay back all my debt...no reason not to).Originally posted by HHM View Post
I was curious about promotions, raises etc as well.
I know I'm certainly not getting one....but what if...I like to be well-informed.
Now another question...I'm currently looking for better employment...let's say I'm offered a job at a much higher income...would that be an issue...my 341 is this Tuesday the 31st and I certainly do not have any higher paying jobs in the pipeline but I'm curious because something could come up between the 341 and the discharge...who knows and I'd hate to lose an opportunity to earn more and further my career.Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11Comment
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Not HHM but from other things I've read here is if something comes up after the 341 you are good to go...even if you are interviewing but no offer has been made I think you are ok...only problems I have read about are cases where a person "miraculously" starts a big bucks job day after 341Comment
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We actually had a poster who filed for chapter 13 and then won the lottery. Not sure what the outcome was, but a 13 works different than a chapter 7.Comment
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The money might not become property of the estate, but it can end up in the trustee's paws anyway depending on timing. If you win it after filing, but before the deadline for objections & the powers that be get wind of it, they can file a motion to dismiss based on "totality of circumstances". Ten million, who cares, but 50K - ouch.There are two secrets for success in life:
1.) Never tell everything you know.Comment
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Thank you for the response daylate. One of the reasons I've had to file is because of unemployment and then a huge income hit. I've never stopped looking for a replacement job, just nothing has come along or stuff has fallen through...it's good to read that is something pops up before my discharge I can consider the offer without recourse.Originally posted by daylate View PostChapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11Comment
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there was a lady who went before me at my 341 meeting who actually ASKED the trustee that very question. and his answer to her was " if you buy ticket up until midnight the night before filing then the winnings belong to me. but if you buy the ticket after that time then it is all yours to keep... ha ha.. i had to laugh out loud.Comment
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LOL, that made me laugh. That's a brave lady, but heck, if you want the truth go to the source!Originally posted by daxtell View PostChapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11Comment
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