B/K Chapter 13 Case

[PBL]

Name of state: Louisiana
Bankruptcy questions concerning other income.
A friend of mine is in b/k chapter 13 right now.
In the year of 2005 she had a winning of $1500.00 and $1280.00 from a casino slot machine on different occassions. She also received a W2-G at the time of the winnings. The $1500.00 was taxed and the $1200.00 was not taxed. Was she suppose to report her winnings to the trustee (she failed to report) and will she be in trouble for not reporting it right away? Her copies of W2-Gs were destroyed during the hurricane storm.
Is it not enough to worry with??????
She has no W2-G information to report it on income taxes.

Is there a limit or certain amount of income to report to b/k trustee.
Will this amount of winnings affect her b/k payments or get her b/k dismissed?

Any suggestions or answers would be greatly appreciated.

Thank you for your time and effort.

 

[Some Random Guy]

Our tax money and interest payments are higher because we as citizens have to pay for deadbeats who skip out on their debts (Yes, I know many others are in BK due to illness and acts of God).

And here you are asking for assistance for a person in bankruptcy who spends their time in casinos gambling their money away instead of paying back her creditors.

Maybe someone else will provide some useful advice.

 

[PBL]

This person does not spend her time in the casino. She was only there for lunch with relatives and put two quarters in the slot and won on both occassions.
I say how lucky can you get!

 

[bigun]

Likely, she should report the winnings but, she should ask her attorney to be certain.

 

[Some Random Guy]

Gambling winnings can be offset by gambling losses. Be sure to deduct the 50c (and any other money planyed) from her gross winnings.

 

[azatty]

In a Chapter 13 bankruptcy, all "property" (as defined in Section 541, which is just about everything under the sun) acquired between the time the debtor files a petition and the case is closed, dismissed, or converted to a Chapter 7, 11, or 12 is property of the bankruptcy estate. 11 U.S.C. §1306(a)(1). So the answer to the question is yes, your friend must report the winnings to the trustee. Not only that, but your friend must turn over the winnings to the trustee for administration (depending upon the plan, if it's a 100% repayment plan, then your friend might not have to do this).

Of course, this begs the question: what is a Chapter 13 debtor doing playing slots?

 

[Ladynred]

Your friend can get copies of the W2-G forms either from the Casino or from the IRS - and I strongly suggest that she do so. Messing with a BK Trustee over money is one thing -- messing with the IRS is something else and even uglier.