A number of my clients receive annual gaming distributions as members of Indian Tribes. In a Chapter 7 Bankruptcy, all of a debtors assets, including the right to receive these distributions, becomes part of the Bankruptcy Estate. Accordingly, only a portion of these funds can be protected, if a Chapter 7 Bankruptcy is filed, the balance would belong to the creditors. This does not mean that Bankruptcy is not an option. In order to protect this future income you may want to consider a low payment Chapter 13 Bankruptcy. Properly prepared this can allow you to get rid of your unsecured debt while protecting a future income stream.
