Lottery Winnings

August 29th, 2005 by Questions

Do lottery, bingo, or other prize money counted in a calculation of surplus income in Ontario?
I read before that it doesn’t count, but thought the law may have changed by now.

Questions

One Response to “Lottery Winnings”



August 30, 2005 at 8:08 am, A licensed trustee said:

Windfalls such as lottery or bingo winnings are not surplus income, they are an asset of the bankruptcy estate. In other words, if you get a raise at work and earn extra money, a portion of that surplus income is paid into your estate.

However, if you win the lottery, ALL of the proceeds are paid into your estate (up to the amount necessary to repay your creditors in full) since it is an asset, just like a pre-bankruptcy tax refund.

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