Debt Collection Process

can a person file a chapter 7 bankruptcy on a debt owed to the ky lottery ?

I know a guy who was leasing a store, the guys he was leasing from decided to sell the store and he was in debt to the kentucky lottery about 23,000 dollars, the ky lottery has threatened to take his home and personal belongings to get this money back. He has a wife and three kids,and has about worried his self to death over whether he can get this debt discharged or is he going to lose his home and etc. over this. He has a loan he is paying on that he took out on this house, not only does he owe 23,000 to the kentucky lottery he owes 20,000 on the loan against the house. I have tried and tried to find answers to this, but so far no one has helped out much. His attorney wants to try and stall the collection process of the ky lottery, but he needs to know if he should go ahead and file on the house rather than to reaffirm it(pay the loan on the house) or if he should go ahead and file on the house cause he is going to lose it and owe the money to the lottery anyway.

Public Comments

1. the KY lottery deal is pretty serious - and could see him some criminal filings
2. "You know a guy"? Stay out of it. He doesn't need conflicting advice from you if he's got an attorney working on it.
3. The lottery is the government. Ever hear the saying that you can't fight city hall?
4. My answer may not solve your immediate crisis, but I feel it's the best advice in this situation. GET A NEW LAWYER! If his lawyer can't figure a way to keep your friend's bussiness debt separate from his personal assets, he is not doing his job. (Disregard this message if your friend's business is not an LLC or s-corp. If the shop was not set up in a manner that limits your friend's liability, he is, quite simply, an awful business man.)