Please explain how lottery winnings would be handled during my bankruptcy: if it's a small amount--less than the amount I still owe you (the trustee); if it's a medium amount--more than I owe you, but less than I owe my creditors; if it's a large amount--much more than I owe you and my creditors. Whatever the amount, would I be allowed to keep some of the winnings for medical expenses? E.g., to buy much-needed medical equipment prescribed by a doctor? Or to get much-needed dental work done? If the winning ticket belongs to two people--my friend and me, will my friend still get his share? If I write a cheque to buy a lottery subscription and then my friend pays me for his share, what proof would you require that the subscription is shared so any winnings would be shared? Thanks.

The Bankruptcy and Insolvency Act requires that any windfalls such as inheritances and lottery winnings to which you become entitled while you are an undischarged bankrupt, must be paid to the Trustee. If you are already bankrupt you should contact your Trustee directly about your winnings. The co-purchaser of a ticket would be entitled to their share if there was an agreement between you or proof that they had paid for one-half of the ticket.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca