Florida Fantasy 5 winners, money management and bankruptcy
On behalf of Bankruptcy Law Firm of Clare Casas on Thursday, April 18, 2013.
Having a lot of money means that you can buy a lot of things. There is no one who would deny that, but managing a significant amount of money is a lot harder than most people think. It can be a full-time job with success often built on years of investment experience. For some, being handed a large lump sum of money can be a burden in disguise.
Florida Fantasy 5 lottery winners recently became the subject of a bankruptcy research study conducted by economists from Vanderbuilt University, the University of Kentucky and the University of Pittsburgh.
Those who won up to $150,000 in the 10 years between the start of 1993 and the close of 2002 were included in the data used. That research pool included approximately 35,000 lottery winners. When the numbers were added up, over 1,900 of those 35,000 lottery winners filed for bankruptcy protection within five years.
When the numbers were broken down by the size of the award, those who brought home smaller lump sums filed within two years and those with larger sums went three or five years before filing for protection. When looking at the entire population of hopeful lottery players, it only added up to 1 percent. However, that includes both winners and those whose ticket was simply thrown away.
Winning the lottery isn't the only type of situation such as this one. A trader likened the situation to one in which someone experiences a large market win when buying and selling stock.
For those who run into financial trouble for any reason, whether due to financial mismanagement, medical issues, credit card debt, job loss or anything else, a bankruptcy attorney can help understand debt relief options, the consequences of each option and which one bests fits an individual situation.
Source: Business Insider, "Winning It Ain't the Same as Keeping It," April 17, 2013