If someone wins a large amount of money in the lottery and then declares bankruptcy, can they still be sued for their winnings?

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Jan Meriss Alfonso
Assistant at Ascent Law LLC

The short answer is yes. If someone wins the lottery, that person is still legally required to pay off their debts—even if they file for bankruptcy. After declaring bankruptcy, that person's lottery winnings may be seized by creditors if they refuse to pay them back. The caveat here is that the bankruptcy court would not allow lottery winnings to be seized unless the winner had won on a ticket bought before filing for bankruptcy. So, if a person wins $600,000 on a ticket bought after declaring bankruptcy, the creditor would have no legal right to the prize.

The Potential of Filing for Bankruptcy

It's also worth pointing out that while filing for bankruptcy could potentially free up assets which would otherwise go to creditors, it actually usually makes it harder to get credit again on one's own later. Since many creditors will check with the courts when deciding whether or not to give credit to a potential debtor, winning the lottery can actually hurt your ability to borrow in the future. It also makes it more difficult for people who are trying to start businesses and need capital investments from other people in order to succeed.

Type of Lawyer That Can Help You With Bankruptcy

If you're like most people, you've probably considered bankruptcy at some point in your life. It's an easy way to get out of debt, and it allows you to start fresh with a clean record. As a result, many people are looking for bankruptcy lawyers these days.

Bankruptcy specialists focus on bankruptcy law and only do that type of law. Some of these lawyers have done this for so long that they know everything about the subject and can answer any questions you may have. They also know how everything works with this type of law and will be able to get your case done quickly, which is why it's best if you hire one for Chapter 7 or Chapter 13 bankruptcy.

If you have any questions, you can get a free consultation with Ascent Law LLC:

Ascent Law LLC:

8833 South Redwood RoadSuite C

West Jordan, UT 84088

(801) 676-5506

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Do you need a bankruptcy lawyer? If you do, call Ascent Law for your Free Consultation (801) 676-5506 - We are here to help you.
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