Question: Hello; I am in a state of bankruptcy near the end of the term. My question revolves around windfall money.
I went bankrupt on approx. $35k and my bankruptcy fees are about $1650. Now let’s say I won the lottery today, and had to turn the money over to the trustee. Is the entire amount forfeit?
Secondly, what about after the full discharge. Let’s say I won the lottery the day after being discharged. Is this something that the CRA or the courts or whoever is going to look at and say “wait a second” on?
Thank you for your time and answers.
Answer: If you are entitled to receive a windfall while bankruptcy (such as lottery winnings or an inheritance) the bankruptcy trustee is required to take the entire amount of the windfall. They would then contact all of your creditors to determine the full amount owed, and pay them in full. Once the creditors are paid in full, and the trustee’s fees are paid, the trustee would apply to annul your bankruptcy. Once the bankruptcy is annulled, any money still in the trustee’s possession would be returned to you.
If you win the lottery after you are discharged from bankruptcy you are entitled to keep the money.