Free Consultation

Winning money?

My parent are in bankruptcy and have gotten what I think is a conditional discharge. After the 9 months they were told they have to pay $8000 and then they would be discharged. During the 9 months they seperated. My mom got a lotto ticket for xmas and won a bunch of money. Will she have to give all the money to the trustee or does she just have to pay the $8000? She`s pretty sure when she signed the papers for this the trustee said it didn`t matter how they got the money when the $8000 was paid they would be done.

Posted from: British Columbia

One Response to “Winning money?”

A licensed trustee said...

The lottery winnings constitute a “windfall” – free money. Your mother is required to disclose the winnings to her trustee who then has the right to seize enough moeny to repay her debts. If there are funds left over after the debts have been repaid in full then it will be returned to your mother and the bankruptcy can be removed from her record.

Sorry, but that’s how the rules work…