Here’s a fundamental rule of bankruptcy—any property you own at the time of filing must be included in the assets that make up your bankruptcy estate. With respect to lottery winnings, you are considered to own the property when you purchase the ticket. The date of the drawing and the date you receive your winnings are irrelevant. Accordingly, here’s how your winnings will be affected:
Suppose you do purchase your lottery ticket a few days before filing for bankruptcy and you win some amount of money. The only way you can keep any of the funds out of your bankruptcy estate is by claiming a valid exemption. In New Jersey, that won’t amount to much, as the state bankruptcy exemptions only allow for $1,000 in personal property ($2,000 for a married couple).
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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