Winning the lottery within 6th Month of Discharge

Discussion in 'Bankruptcy' started by Venoumis, Apr 29, 2004.

  1. Venoumis

    Venoumis Guest

    Im curious as to find out whether your Bankruptcy can get cancelled after
    winning the lottery or once you are discharged youre branded for 7
    years???.....

    Secondly, If one decided to take legal actoin as to clear bankruptcy from
    their record, what would be the reccomended steps to take ( other than
    voluntarily paying off the creditors what you owe them ). Is it an easy
    process and if so how immediate does your credit report reflect the
    change???
     
    Venoumis, Apr 29, 2004
    #1
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  2. Venoumis

    K Kim Guest

    Once you filed BK, it cannot be un-done. The record would show that
    you have filed BK.



    "Venoumis" <> wrote in message news:<KMZjc.1989$>...
    > Im curious as to find out whether your Bankruptcy can get cancelled after
    > winning the lottery or once you are discharged youre branded for 7
    > years???.....
    >
    > Secondly, If one decided to take legal actoin as to clear bankruptcy from
    > their record, what would be the reccomended steps to take ( other than
    > voluntarily paying off the creditors what you owe them ). Is it an easy
    > process and if so how immediate does your credit report reflect the
    > change???
     
    K Kim, Apr 29, 2004
    #2
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  3. Venoumis

    Brett Weiss Guest

    > Im curious as to find out whether your Bankruptcy can get cancelled after
    > winning the lottery or once you are discharged youre branded for 7
    > years???.....


    Provided the ticket was purchased after the bankruptcy was filed, it's
    yours. A Chapter 7 can be dismissed only with court approval.

    > Secondly, If one decided to take legal actoin as to clear bankruptcy from
    > their record, what would be the reccomended steps to take ( other than
    > voluntarily paying off the creditors what you owe them ). Is it an easy
    > process and if so how immediate does your credit report reflect the
    > change???


    You cannot legally remove a bankruptcy from your credit report (unless
    someone makes a mistake).

    --
    Brett

    *****************************************************************
    * Personal Injury/Malpractice Bankruptcy *
    * *
    * BRETT WEISS, P.C. *
    * Attorneys at Law *
    * Maryland, D.C. and Federal Bars *
    * *
    * www.brettweiss.com *
    * *
    * Small Business Estates & Estate Planning *
    *****************************************************************

    The Small Print: This response is for discussion purposes only. It isn't
    meant to be legal advice and you shouldn't treat it as such. If you want
    legal advice, speak with a local lawyer familiar with your state's laws who
    can review *all* of the facts and the law applicable to your situation.
    *****************************************************************
     
    Brett Weiss, Apr 29, 2004
    #3
  4. So, there is no danger they can do one of those 707(b) actions to try
    and get the money (saying it "violated the spirit of the bankruptcy
    code?") ??

    Plus, is there any distinction at all, if the "winning ticket" comes:

    --right after filing

    --right after the 341 meeting ("meeting of creditors")

    --in the "gray area" between "discharge" and the actual tolling of the
    "six months from filing" window??

    "Brett Weiss" <> wrote in message news:<>...

    > > Im curious as to find out whether your Bankruptcy can get cancelled after
    > > winning the lottery or once you are discharged youre branded for 7
    > > years???.....

    >
    > Provided the ticket was purchased after the bankruptcy was filed, it's
    > yours. A Chapter 7 can be dismissed only with court approval.
     
    Lise Michaels, May 4, 2004
    #4
  5. Venoumis

    Brett Weiss Guest

    The trustee can *try*--I don't think he/she would succeed. So long as the
    ticket was purchased after filing and there isn't an issue regarding source
    of funds (for example, non-exempt funds were used to purchase the ticket) I
    don't see the Court granting the trustee's motion.

    --
    Brett

    *****************************************************************
    * Personal Injury/Malpractice Bankruptcy *
    * *
    * BRETT WEISS, P.C. *
    * Attorneys at Law *
    * Maryland, D.C. and Federal Bars *
    * *
    * www.brettweiss.com *
    * *
    * Small Business Estates & Estate Planning *
    *****************************************************************

    The Small Print: This response is for discussion purposes only. It isn't
    meant to be legal advice and you shouldn't treat it as such. If you want
    legal advice, speak with a local lawyer familiar with your state's laws who
    can review *all* of the facts and the law applicable to your situation.
    *****************************************************************

    "Lise Michaels" <> wrote in message
    news:...
    > So, there is no danger they can do one of those 707(b) actions to try
    > and get the money (saying it "violated the spirit of the bankruptcy
    > code?") ??
    >
    > Plus, is there any distinction at all, if the "winning ticket" comes:
    >
    > --right after filing
    >
    > --right after the 341 meeting ("meeting of creditors")
    >
    > --in the "gray area" between "discharge" and the actual tolling of the
    > "six months from filing" window??
    >
    > "Brett Weiss" <> wrote in message

    news:<>...
    >
    > > > Im curious as to find out whether your Bankruptcy can get cancelled

    after
    > > > winning the lottery or once you are discharged youre branded for 7
    > > > years???.....

    > >
    > > Provided the ticket was purchased after the bankruptcy was filed, it's
    > > yours. A Chapter 7 can be dismissed only with court approval.
     
    Brett Weiss, May 4, 2004
    #5
  6. Venoumis

    none Guest

    If you win the lottery, why not just pay the money to the trustee
    without putting up a fight?

    Lise Michaels wrote:

    > So, there is no danger they can do one of those 707(b) actions to try
    > and get the money (saying it "violated the spirit of the bankruptcy
    > code?") ??
    >
    > Plus, is there any distinction at all, if the "winning ticket" comes:
    >
    > --right after filing
    >
    > --right after the 341 meeting ("meeting of creditors")
    >
    > --in the "gray area" between "discharge" and the actual tolling of the
    > "six months from filing" window??
    >
    > "Brett Weiss" <> wrote in message news:<>...
    >
    >
    >>>Im curious as to find out whether your Bankruptcy can get cancelled after
    >>>winning the lottery or once you are discharged youre branded for 7
    >>>years???.....

    >>
    >>Provided the ticket was purchased after the bankruptcy was filed, it's
    >>yours. A Chapter 7 can be dismissed only with court approval.
     
    none, May 6, 2004
    #6
  7. ???? Wow!

    So you are saying, say, if someone won a million in the lotto, BUT 5
    months before had declared chapter 7 on (speaking hypothetically)
    $400,000 of medical debt....they should just pay off the debt that is
    otherwise "poof" anyhow (because of the bankruptcy discharge??)


    none <> wrote in message news:<lqfmc.529633$>...
    > If you win the lottery, why not just pay the money to the trustee
    > without putting up a fight?
    >
    > Lise Michaels wrote:
    >
    > > So, there is no danger they can do one of those 707(b) actions to try
    > > and get the money (saying it "violated the spirit of the bankruptcy
    > > code?") ??
    > >
    > > Plus, is there any distinction at all, if the "winning ticket" comes:
    > >
    > > --right after filing
    > >
    > > --right after the 341 meeting ("meeting of creditors")
    > >
    > > --in the "gray area" between "discharge" and the actual tolling of the
    > > "six months from filing" window??
    > >
    > > "Brett Weiss" <> wrote in message news:<>...
    > >
    > >
    > >>>Im curious as to find out whether your Bankruptcy can get cancelled after
    > >>>winning the lottery or once you are discharged youre branded for 7
    > >>>years???.....
    > >>
    > >>Provided the ticket was purchased after the bankruptcy was filed, it's
    > >>yours. A Chapter 7 can be dismissed only with court approval.
     
    Lise Michaels, May 6, 2004
    #7
  8. Venoumis

    none Guest

    I'll flip-flop on this based on the amount that was discharged. If I
    were to win $1 million after discharging $50k in debt, I wouldn't fight
    the trustee on the whole thing. However, if it was $400k in debt, I
    wouldn't give it up without a fight. Keep in mind that a trustee gets
    roughly 20% of what he can collect for the creditors, so if you hit the
    lotto, you can bet the trustee would try to collect "in good faith for
    the creditors."

    Lise Michaels wrote:
    > ???? Wow!
    >
    > So you are saying, say, if someone won a million in the lotto, BUT 5
    > months before had declared chapter 7 on (speaking hypothetically)
    > $400,000 of medical debt....they should just pay off the debt that is
    > otherwise "poof" anyhow (because of the bankruptcy discharge??)
    >
    >
    > none <> wrote in message news:<lqfmc.529633$>...
    >
    >>If you win the lottery, why not just pay the money to the trustee
    >>without putting up a fight?
    >>
    >>Lise Michaels wrote:
    >>
    >>
    >>>So, there is no danger they can do one of those 707(b) actions to try
    >>>and get the money (saying it "violated the spirit of the bankruptcy
    >>>code?") ??
    >>>
    >>>Plus, is there any distinction at all, if the "winning ticket" comes:
    >>>
    >>>--right after filing
    >>>
    >>>--right after the 341 meeting ("meeting of creditors")
    >>>
    >>>--in the "gray area" between "discharge" and the actual tolling of the
    >>>"six months from filing" window??
    >>>
    >>>"Brett Weiss" <> wrote in message news:<>...
    >>>
    >>>
    >>>
    >>>>>Im curious as to find out whether your Bankruptcy can get cancelled after
    >>>>>winning the lottery or once you are discharged youre branded for 7
    >>>>>years???.....
    >>>>
    >>>>Provided the ticket was purchased after the bankruptcy was filed, it's
    >>>>yours. A Chapter 7 can be dismissed only with court approval.
     
    none, May 6, 2004
    #8
  9. Venoumis

    Thoth Guest

    "none" <> wrote in message
    news:WSwmc.536079$...
    > I'll flip-flop on this based on the amount that was discharged. If I
    > were to win $1 million after discharging $50k in debt, I wouldn't fight
    > the trustee on the whole thing. However, if it was $400k in debt, I
    > wouldn't give it up without a fight. Keep in mind that a trustee gets
    > roughly 20% of what he can collect for the creditors, so if you hit the
    > lotto, you can bet the trustee would try to collect "in good faith for
    > the creditors."


    As long as the lottery winnings were from a ticket purchased from
    post-petition earnings, I don't see any way a chapter 7 trustee could bring
    this money into the bankruptcy estate for distribution. On the other hand,
    if the court or trustee discovered the winnings prior to the bar date,
    either the court or the trustee could move to dismiss the case for
    substantial abuse, even if the debtor could only afford to repay a fraction
    of the unsecured debts. After the bar date, neither the trustee nor the
    court could do anything about the winnings or the debtor's discharge. 11
    USC 541; 11 USC 707(b); FRBP 1017(e)
     
    Thoth, May 6, 2004
    #9
  10. So, just WHAT kind of "earnings" or money received AFTER the 341
    hearing, AFTER getting the "discharge paper" in the mail, would be
    "vulnerable?"

    If I understand correctly, the case isn't "totally over" till 6 months
    from the filing of the chapter 7 petition, right? So there is that
    "gray area" between the events in the above paragraph, and the "6
    month point." So "what if"...

    --the individual gets some sort of great sales job.....and makes a big
    sale, which will yield a $100,000 commission. Say it occurred 4
    months after he filed, and the commission will not be "in hand" till
    about the five month point.

    (or does THAT part of it even matter..."when the commission comes?")

    --contest winnings, whether on a raffle, a slot jackpot, an appearance
    on a game show...anything like that??


    "Thoth" <> wrote in message news:<Xgymc.72793$Qy.14976@fed1read04>...
    > "none" <> wrote in message
    > news:WSwmc.536079$...
    > > I'll flip-flop on this based on the amount that was discharged. If I
    > > were to win $1 million after discharging $50k in debt, I wouldn't fight
    > > the trustee on the whole thing. However, if it was $400k in debt, I
    > > wouldn't give it up without a fight. Keep in mind that a trustee gets
    > > roughly 20% of what he can collect for the creditors, so if you hit the
    > > lotto, you can bet the trustee would try to collect "in good faith for
    > > the creditors."

    >
    > As long as the lottery winnings were from a ticket purchased from
    > post-petition earnings, I don't see any way a chapter 7 trustee could bring
    > this money into the bankruptcy estate for distribution. On the other hand,
    > if the court or trustee discovered the winnings prior to the bar date,
    > either the court or the trustee could move to dismiss the case for
    > substantial abuse, even if the debtor could only afford to repay a fraction
    > of the unsecured debts. After the bar date, neither the trustee nor the
    > court could do anything about the winnings or the debtor's discharge. 11
    > USC 541; 11 USC 707(b); FRBP 1017(e)
     
    Lise Michaels, May 15, 2004
    #10
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