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One of the reasons why debtors seek bankruptcy protection is to stop harassing collection attempts from creditors.  While anyone should not be subject to such abusive measures, debtors have rights you need to know in order to protect yourself, even before you decide to file for legal protection.  There are a number of debt collection [...]

Being “bankrupt” and not being able to pay your debts should be considered two different situations.  You often hear people throw around the term or expression of going “bankrupt” when they file bankruptcy protection.  Yet, it may not necessarily mean you can’t pay what you owe. When a consumer is considered insolvent they may be [...]

I ran across an interesting lottery story with an interesting bankruptcy twist.  This story took place in Syracuse, New York where a down and out maintenance worker named Robert Miles bought a scratch off lottery ticket in a quick mart in 2006.Addicted to drugs at the time, Mr. Miles took his ticket to the proprietors of the Green Ale Market to find out if he had won.  The owners of the Market responded that yes, he had won $5,000.  In reality, the winning ticket was worth $5 million.  The store owners gave him $4,000, keeping $1,000 of the “winnings” for themselves as a fee(!).  The store owners then waited six years to submit the winning $5 million ticket.Officials at the state lottery office launched an investigation because they were suspicious that the purported winner had waited six years to come forward and that the winner owned the store where the ticket was sold.When he read about the store owners’ stroke of luck, Mr. Miles – now sober – came forward to say he had been ripped off.  The store owners ended up in jail and Mr. Miles was awarded his deserved $5 million.The news story also reports that in 2008, Mr. Miles filed bankruptcy, “knowing that he should have been a millionaire five times over.”This got me thinking about the bankruptcy implications of this story.First, I am assuming that when Mr. Miles has or will forthwith notify his bankruptcy attorney and Chapter 7 trustee about this newly discovered asset.  The trustee will file a motion to reopen the Chapter 7 case and will ask Mr. Miles to write the trustee a check sufficient to repay all creditors whose claims were discharged in his bankruptcy.Second, it would be interesting to know if Mr. Miles included the disputed lottery win as an asset on Schedule B of his bankruptcy case.  The story is silent about Mr. Miles’ actions between 2006 and 2012 but it appears that Mr. Miles figured out prior to filing bankruptcy that he had been ripped off.If he did not include this disputed asset on Schedule B, it is possible that his discharge will be revoked, or, less likely that he could be investigated for bankruptcy fraud 1  My guess is that the disputed lottery winnings were very speculative in 2008 and that the United States trustee will not try to make trouble for this very lucky winner, but that possibility certainly exists.We can draw several lessons from Mr. Miles’ unusual tale.  First, make sure to include in your bankruptcy petition every asset you own, even those that are in dispute and unlikely to pan out.  Second, if you did not include a speculative asset in your initial filing, reveal that asset as soon as you learn that it may be collectible 2.I am happy that justice prevailed for Mr. Miles and I hope that he puts his trust in honest advisers this time.

1. The penalties for failing to include an asset can be severe.  For example, a debtor’s failure to list a lawsuit where he is the plaintiff may preclude that debtor from pursuing damages post bankruptcy. ↩
2. This would involve filing a motion to reopen your case for the purpose of amending Schedule B to add an asset. ↩

The post Another Lottery Story with a Bankruptcy Angle appeared first on theBKBlog.

Most of our bankruptcy clients are understandably concerned with how their debts are going to be reflected on their credit reports after discharge. After you obtain a discharge of your debts, certain facts about your discharged debts may continue to appear on your credit report.
The Fair Credit Reporting Act requires consumer reporting agencies to maintain an accurate record of your credit information. Creditors who report your information to the consumer reporting agencies are legally obligated to be truthful and accurate. The FCRA dictates the kind of information that they can report, and the length of time that the data can appear on your credit report. If they do not report accurate or truthful credit information about you, you can dispute that information or take other action if you are harmed by their violations.
Your bankruptcy information can be reported for up to ten years. While it may seem like negative information, the reporting of your bankruptcy discharge is at worst a mixed bag.
After all, a bankruptcy discharge can “clean up” debts that used to show up on your credit report as delinquent. This is so because discharged debts can no longer be reported as being unpaid or in a past due status. Moreover, each reported debt should be reflected as having a zero balance or shown as discharged or included in bankruptcy. A debt cannot be listed as currently owed, active, delinquent, charged off or having a balance due. When your discharged debts are reported inaccurately your credit rating could unnecessarily suffer.
In my next post, I will discuss the steps for cleaning up your credit record in the event that debts are inaccurately reported after bankruptcy.
 
The original post is titled How Your Debts Should Be Reported on Your Credit Report After Bankruptcy , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .