What if you won the Lottery and the state went bankrupt?

Question

If you won $500 Million dollars in the state Lottery and your state went bankrupt, but they were supposed to be paying you a little bit each month for the next 35 years, what would happen?

The state of MI has a situation like this now.

They have no jobs and the state has an idiot for a governor and they have cut a lot of programs in MI to save money, including the state lottery.

This makes no sense to me, because, the lottery was there to MAKE money. Now they got rid of it! WTF!

Any way, if I had won a large sum of money and the state shuts down the lottery, but they were going to pay me $500 Million or so over the next 30 years, but I just won Yesterday and today, they decide to get rid of the Lottery and they file bankruptcy, do they still owe me the money?

If so, how would they pay me now, if there is no money coming in to the lottery or where ever I won it from?

I would not be too happy about that. Because, when you file bankruptcy, it usually cancels out most of your bills, with a few exceptions.

Answer 1

Yeah, that would tick me off.  I don't know what they'd do in that situation but I'd opt for lump sum instead of yearly installments.

Answer 2

When you are paid over a long period of time from the lottery, the lottery buys an annuity from a bank or an insurance company to guarantee the payments.  You should be okay.

Answer 3

it would be very interesting if such thing happens.

but fact is Federal Government / insurance companies etc are there to back up state so you don't need to worry.

go and buy you lottery without any worry.

Answer 4

it is insured

Answer 5

The state has insurance for that sort of problem.  

Love Jack

Answer 6

yes if i played that is exactly what would happen!!!!