to give up the money to the trustee. The judge said they had 33k in debt and have to pay 295.00 a month. Two weeks after that hearing they won 30k. Must they tell the judge, can they drop the bankruptcy? Please only informed serious answers please! If you're guessing like me, please don't respond. If you know, please do!
2006-09-08 04:55:43 · 7 answers · asked by lamont p 1 in Business & Finance ➔ Personal Finance
until the bankruptcy is 'discharged' then any income even winnings, must be reported to the department administering the bankrutcy. The won't be in trouble as long as they report it. Then the Administrator decides what will happen, they might take all of it, they might leave some of it for the person. After the period of bankruptcy (usually 1 - 2 years) then the person is 'discharged from bankruptcy and can make a fresh start and would get to keep any earnings or winnings. Keeping information secret from the Administrator is a big mistake and will get the person into trouble if caught, which is very likely as banks have to report such activity, it would be difficult to hide 30k
IF they put it in the bank that knows they are bankrupt they will get caught very fast, of they put it in a new bank account, it will take a little longer to get caught. Cash could be hidden but very difficult to get, and spending it will be noticed ie buying a car or house, or having a nice time
2006-09-08 05:04:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
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RE If someone has recently filed a bankruptcy, and then win a large sum of money do they get in trouble or have?
to give up the money to the trustee. The judge said they had 33k in debt and have to pay 295.00 a month. Two weeks after that hearing they won 30k. Must they tell the judge, can they drop the bankruptcy? Please only informed serious answers please! If you're guessing like me, please don't respond. If you know, please do!
2014-10-03 22:01:15 · answer #2 · answered by Herrick 1 · 0⤊ 0⤋
They must speak to the trustee if they have won a large sum of money and tell them truthfully. It states that in the bankruptcy papers which they received and signed at time of filing. The trustee will take the money and divide it among their creditors which is a good thing for them. And if they try to keep it and not tell, it will be found out. They have ways of knowing what people are up to financially. Always do the right thing to not suffer the consequences. I hope this helps.
2006-09-08 05:43:39 · answer #3 · answered by son-shine 4 · 0⤊ 0⤋
Sounds like they filed a chapter 13-which means they do have to repay the debits--The $30,000 doesn''t have to be reported to the judge because the courts have already determined they are in debit and have scheduled a payment plan. They may be able to pay off the bankruptcy debit in a larger payment amount or at once. The Bankruptcy itself can not be dropped. Lucky break for the winner--
2006-09-08 05:03:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If the bank/courts garnish the wages then you don't even get the money. The banks/courts take it.
In any case, bankruptcy laws means you have to pay off your creditors, if you have the money and don't pay them you can get in a lot of trouble.
Ask a lawyer instead.
2006-09-08 05:01:52 · answer #5 · answered by The First 3 · 1⤊ 0⤋
You can probably keep the money. When you file bankruptcy, the court uses a snapshot of your finances on the date of the filing. Generally, your creditors can't get to any new income you have.
2006-09-08 04:59:16 · answer #6 · answered by Anonymous · 0⤊ 1⤋
i agree with duoak, but it would be safe to ask your lawyer for sure.
2006-09-08 05:02:13 · answer #7 · answered by ambrks71 2 · 0⤊ 0⤋