What happens if I win the lottery or receive a large inheritence while in Bankruptcy?

When you file for bankruptcy all of your assets before filing are part of the bankruptcy estate. What we do is we list all of your assets and then we find a corresponding exemption. Either a state law or federal law that allows us to exempt that property which means is to protect it where its free from creditors so that you are able to keep that.

After you file the bankruptcy case if you receive lottery winnings or inheritance that you were entitled too before you filed the bankruptcy case there fore you had a property interest in it before filing you just did not receive it till after filing that is property of the bankruptcy estate. So what we need you to do is we need you to report that to our office. We will determine the amount of the proceeds and compare it to the amount of debt that is listed in your case, and we can tell you how to proceed. However if you win a million dollars and only have a hundred thousand dollars in debt your not going to lose the entire million dollars. All you will have to do is pay the entire portion of the earnings that are associated with the winnings to pay off all of your creditors.