Winning Money

[thebeachbum]

If someone was between their 341 meeting and Feb. 15 was the last day for objections and that person was to win $5000 from a slot machine last night, would they have to report that to anyone, trustee, own attorney, etc..? There is a 1099, and it will have to be reported on 2010s tax return.

Chapter 7 No Assets

thanks

[justbroke]

No. They do not need to report any windfall, unless it's related to an inheritance or insurance policy as part of a death benefit, or due to a dissolution of marriage causing dissipation of property.

Remember, your Chapter 7 bankruptcy estate is set on the day you file. Anything that occurs after that -- with the exception of the death related items and divorce I mentioned above -- are not part of that estate and are outside the reach of the Trustee.

[StartingOver08]

Hey! Congratulations on your win!

[thebeachbum]

No. They do not need to report any windfall, unless it's related to an inheritance or insurance policy as part of a death benefit, or due to a dissolution of marriage causing dissipation of property.

Remember, your Chapter 7 bankruptcy estate is set on the day you file. Anything that occurs after that -- with the exception of the death related items and divorce I mentioned above -- are not part of that estate and are outside the reach of the Trustee.

Sweet thanks, I've been sitting here staring at this cash all morning, trying to decide whether to call my attorney or not... In the bank it goes

[justbroke]

Sweet thanks, I've been sitting here staring at this cash all morning, trying to decide whether to call my attorney or not... In the bank it goes

You can always call your attorney to verify.

[BCA2009]

Sweet thanks, I've been sitting here staring at this cash all morning, trying to decide whether to call my attorney or not... In the bank it goes

Just because I am paranoid, I might put it under my mattress rather than the Bank.

[HHM]

Not an issue, money you win after the case is filed is beyond your BK.

In the lottery scenario, if you purchased the ticket before the BK was filed, the winnings would go to the BK, if you purchased the ticket after the BK was filed, the debtor keeps the winnings. So long as you did not use "estate" property to gamble (and let's be candid for a second, exactly why are you gambling in the middle of an active BK?), then you have nothing to worry about.

[thebeachbum]

(and let's be candid for a second, exactly why are you gambling in the middle of an active BK?)

I wasn't gambling I was drinking, I work in Atlantic City, I usually go for a cocktail with some of my friends on my "Friday", they wanted to play the slots and drink for free so instead of tossing $40 bucks on the bar I tossed $40 into a slot machine. In a sense it's part of my budgeted entertainment expense.