Are Lottery Winnings Exempt from Bankruptcy in New York City?
Are Lottery Winnings Exempt from Bankruptcy in New York City?
Many of our clients enjoy playing the lottery every week in New York City. If you are down on your luck financially the thought of winning the lottery can be especially appealing. The ironic thing is if you underwater on your bills and considering bankruptcy, or have already filed a bankruptcy case you should not be playing the lottery. If you were by chance lucky enough to win the Powerball while in bankruptcy your creditors could wind up with some if not most of the winnings. There is some limited protection; your winnings would be sheltered up to $12,000, but generally speaking windfalls from gambling, the lottery, or inheritances are not protected, or exempted, from the bankruptcy process in New York. If you win the lottery while your bankruptcy case is in progress the trustee will use the earnings to repay your creditors, which would defeat the purpose of your filing bankruptcy in the first place.
It can certainly be tempting to hope for a miracle by playing the lottery, but considering the odds you’re sure to find a better way out of your financial situation by consulting an attorney. Bankruptcy protection is guaranteed for those who need it. The chances of winning the lottery are millions to one. Don’t get me wrong, playing the lottery can be a lot of fun, and a welcome distraction at very stressful times. Playing the lottery lets you dream of getting a new chance at life, and a chance at all the opportunities and possessions you always wanted. Bankruptcy can actually give you a new life a lot faster than the lottery. It may not be the future of your dreams, but it will be a completely debt free new lease on life and the fresh start you need. And with a fresh start many of our clients have gone on to do wonderful things indeed.
If you can’t make your ends meet, stop playing the lottery and start thinking about your rights as a debtor in New York. You have the legal right to bankruptcy protection and can easily break out of the bad financial situation you’re in now. Bankruptcy protection is not a game of chance. Our law firm maintains a 99% Chapter 7 Bankruptcy discharge record in New York City as of 8/31/16. Contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free bankruptcy consultation today.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.