winning money (lotto)
hi i was wondering lets say i filed for bankruptcy and have not been discharged and now i just won some money in the lottery say 50000 off a scratch ticket .. i know i have to tell my trustee but how much money do they keeep or do i lose it all >> thanks
Posted from: Ontario
You have a couple of options depending on how much you owed when you filed for bankruptcy and how much you’ve won.
The simplest thing to do is simply notify your trustee. They will seize the winnings and apply it to your debt. If after all fees and the debts have been paid there are funds left over, your trustee will return those extra funds to you. (If this happens you should ask your trustee to apply to the Court to have your bankruptcy annulled – removed from your record).
A second option is to notify your trustee and ask them to help you file a consumer proposal to your creditors offering to hand over most of the winnings. You’d try this option if your winnings will not repay your debts in full. You might be wondering why your creditors would agree to this approach since they are entitled to all of the winnings as part of your bankruptcy… Well, beleive it or not, there are people making the decisions about your credit and they will understand that this was a windfall. Often, they’ll allow you keep some of the money…
Regardless, if you’ve won, it is time to talk to your trustee…