Joint bank account

[Boscoe]

If you have a joint bank account with a non-spouse family member who is not filing with you, how do withdrawals the family member make affect anything? 1/2 the money in the account is legally theirs, correct? This is obviously not a payment to the family member, i.e. "insider", right?

[HHM]

First off, how much money is in the bank account. If were only talking a few hundred dollars or less, then you are probably ok. Next question, is this non-spouse family member a minor?

This is something that ALWAYS gets hosed up in BK. You MUST be prepared to demonstrate where all the deposits into that account came from. BK trustee's relish the opportunity to go after money in joint bank accounts since it is relatively easy money. Your best option is to take your name off the account, and withdraw any money that is yours, and then be prepared to demonstrate that the money that belongs to this non-spouse family member is actually theirs.

[Boscoe]

What about the opposite? The family member withdraws the money that is theirs and the remainder would be part of the bk estate.

As long as this is done several months before the filing, it should be ok, right?