Ok, how stupid was this?

[Beedlebrow]

We had our meeting last Thursday, and are waiting on the 60 day period to end.
We are hoping for a discharge of about 60k in cc debt, and we reaffirmed the house and cars.

A friend came in to town, and we went to a local casino for dinner.
I haven't been there in a long time, and I had some points saved on my club card, which I used to pay for dinner.
I also had a coupon for $25.00, so I thought I'd play that.

I ended up hitting a taxable jackpot for 4 grand.
I don't know whether to be happy or not.
I'm going to call my attorney tomorrow, but in the meantime, what do you all think?
I obviously have to report it.
Will they take it?
Will it force me out of 7 and into 13?

[fltoo]

Lotto winnings are yours to keep after the meeting. I would think it would be the same for a jackpot.

Let's hope!

[TEW]

Lotto winnings are yours to keep after the meeting. I would think it would be the same for a jackpot.

Let's hope!

Oh they can take it 6 months after discharge

[fltoo]

Can't say about the jackpot, but lottery winnings/salary/bonuses cannot be taken in a chap 7. Only life insurance proceeds and inheritance can be taken per the BK code.

I would bet that a jackpot would be considered same as the lottery.
Although, if the lottery ticket was purchased before filing, then the trustee has a right to take it.

If a trustee aggressively tries to take the winnings, it could be successfully fought in court. There is plenty of case law concerning this matter.

[TEW]

Can't say about the jackpot, but lottery winnings/salary/bonuses cannot be taken. Only life insurance proceeds and inheritance can be taken.

I would bet that a jackpot would be considered same as the lottery. Not sure though.

No there are several posts they can take lottery winnings

[fltoo]

Sorry, you are wrong on this and I am not arguing the point with you any further. I don't have time now to post the code or the case law. I will try to get back to this at a later time.

[JRScott]

The main question becomes what money did you use to pay for the ticket.

If the money used to buy the ticket was earned and paid to you prior to the filing date than the ticket and any proceeds belong to the bankruptcy estate. It will make you an asset case however it does not necessarily mean you would not discharge after all 4k usually isn't enough to turn around a bankruptcy case.

Now if the money used to buy the ticket was earned after filing and paid to you after filing then the proceeds belong to you not the estate. However keep in mind the totality of situation. Fortunately 4k isn't enough to sway you, if you'd won millions they'd dismiss the case saying you had the ability to pay now.

Do the right thing and ask your lawyer.

[Beedlebrow]

The main question becomes what money did you use to pay for the ticket.

If the money used to buy the ticket was earned and paid to you prior to the filing date than the ticket and any proceeds belong to the bankruptcy estate. It will make you an asset case however it does not necessarily mean you would not discharge after all 4k usually isn't enough to turn around a bankruptcy case.

Now if the money used to buy the ticket was earned after filing and paid to you after filing then the proceeds belong to you not the estate. However keep in mind the totality of situation. Fortunately 4k isn't enough to sway you, if you'd won millions they'd dismiss the case saying you had the ability to pay now.

Do the right thing and ask your lawyer.

We filed about 2 months ago, all money earned prior to that has been paid.
My total cost for this jackpot was the initial 5 bucks I put in to use the 25 bucks of their money.
And of course, as I have already stated, I am calling my attorney tomorrow.
I was just looking for opinions prior to that.

[ready2puke]

Very interesting please let us know how it turns out ...good luck and I sure hope you get to keep it.

[Doghouse]

Doubt that you will be forced into a 13. But even if they take the entire 4K, it's money you did not have a week ago. It may hurt if the money is taken but that's a small sacrifice to get rid of 60K in debt.

[StartingOver08]

Anyway it sounds like your life has turned around - look at that, you aren't even discharged yet and you have won something!

You have the right attitude about it - call the attorney, see what he thinks and just be thankful that this process is almost over.

[Floridagail]

Since you have already had your 341 you are okay. Your file date was fresh start. No need to tell anyone.

[fltoo]

The main question becomes what money did you use to pay for the ticket.

If the money used to buy the ticket was earned and paid to you prior to the filing date than the ticket and any proceeds belong to the bankruptcy estate. It will make you an asset case however it does not necessarily mean you would not discharge after all 4k usually isn't enough to turn around a bankruptcy case.

Now if the money used to buy the ticket was earned after filing and paid to you after filing then the proceeds belong to you not the estate. However keep in mind the totality of situation. Fortunately 4k isn't enough to sway you, if you'd won millions they'd dismiss the case saying you had the ability to pay now.

Do the right thing and ask your lawyer.

Where does it say that "if you won a million in the lottery, your case will be dismissed?" 4 thou or 1 trillion, they cannot take your lottery winnings. There is plenty of case law regarding this where a trustee tried and was denied.

Darn, can't find the BK code regarding the 6 month period of what the trustee can take.

Just Broke, where are you? I know you can find it.

[dingdong]

[Beedlebrow]

Okay, spoke with my attorney.
He said that he will shoot the trustee an email, but not to worry.
We have enough room so that a one time income of 4k isn't enough to cause a concern.
I will not lose any money, I will not be forced out of a 7 into a 13.

So now I'm feeling pretty good.
As the trip to the casino was a fluke (I've been really good about staying away), I don't anticipate going back and giving them their money back one pull at a time.

Thanks for all of the input.