joint bank account

[lmb]

I'm about to file for Chapter 7. My concern is that my bank account is joint with my mother. I'll have less than $150 in the account when I file. My mother has never deposited funds in the account, it's always been my money in there. She was just on the account in the event of emergency, to have access to the money.

My fear is that I don't want my mother to know I'm filing for bankruptcy. Is the trustee likely to contact her and mail some kind of notice because she's on my bank account? I just don't want her drawn into this.

I'm a student. I'm declaring bankruptcy on about $13,000. I know it's a low amount to discharge, but I live on so little.

[magyar123]

Is it your mom's account on which she put you on as a co-owner, or the other way around? Do the checks have both of your names?

[lmb]

We opened the account jointly, together. I'm the only one who has ever used the account. All of the deposits and withdrawals/checks are from me. Basically, she's just jointly on the account in case of emergency. The checks only have my name on them. But the statements list both of our names.

She's never made a withdrawal or deposit.

[magyar123]

Get her name off the account, but have her hold on to the ATM/Check card that is in her name - for the emergencies that you mention. Don't think the bank would de-activate her card just because her name is not on the account anymore.

[lmb]

She never received an ATM or check card. Also, her name is listed on the bank statements for the last six months. That wouldn't remove retroactively, I don't think?

[magyar123]

If she doesn't have an ATM/Check card in her name how does she plan to use the account "in emergencies"?
As far as the bank statements are concerned, print them off your bank's website, white out her name and make copies of them, and submit the copies.

[lmb]

The "emergency" was if I died. I never took out life insurance. The only way I could reassure my mother was that I would place her on my checking account, so she'd have access to my funds if I died.

I don't think I can white out her name. I think that'd be fraud. I appreciate you thinking this through with me, though.

[keepmine]

Lord, don't file over $13K. You won't be a student forever and at some point your income will increase. Are you current?

[lmb]

I'm 2.5 years past due. A process server just served me with a suit from one of my credit card companies this week. This is the first lawsuit. Another is about to file.

I cannot afford to pay anything. I live really frugally on grants and loans. I graduate in two years. My credit is already wrecked from everything going past due so long.

My fear is that I'll get subpeoned for a debtor's examination, and they'll make me live even poorer than I do now. I don't know how I'd make it and stay in school. And nothing is getting in between me and graduating.

I know $13,000 sounds pathetic. But I'm at the end of my rope. I'm also going to be graduating with about $60,000 in student loans. Another concern is how will I get a good job when I apply, they check my credit, and they see I have judgments and garnishments? I'm afraid I'd be trapped with debt and few good job prospects.

I don't care about the consequences of a bankruptcy. I don't plan on buying a home or car in the next few years anyway. BTW, I'm in my thirties. I've just got to graduate.

[lmb]

Keepmine,

I'm going to have almost nothing (less than $150 as my state allows) in my joint checking account when I file. Is there any way you think my mother could find out? Remember, she's listed jointly on my checking account. I don't want my family to know I'm filing bankruptcy.

[keepmine]

All you can do is list the bank account and with a minimal balance, I doubt the trustee will be interested.

[WhatMoney]

I don't see how your mother would be notified unless the bank has her address on this account, and decided to close the account because of the BK. So, if the bank has your mother's address, why not change it to your's before you file?
If the account is in your name for tax purposes and your mother does not get any statements mailed to her, I think you are safe.

As long as your mother is not on the bank's mailing list, I would just close the joint account and open one in your name. Why would a trustee be interested in a closed account with low balances in the past, that is now closed with a zero balance? You can always add your mother's name back on the account after you are discharged. If you die before discharge, leave a will with the account as her asset.

If the trustee was extremely anal and wanted your mother's address for some reason, tell him/her you don't want her to know and to explain what your mother has to do with your personal bankruptcy. It's all public record anyway if someone wants to snoop. There's no guarantee some busybody relative may find out and blab it to your mother.

Whiteout is a lot less trouble...

[woeisme]

I know this isn't the point of your post, but I have to ask, how is your Mom having access to $150 reassuring to her? It wouldn't even pay for the flowers, let alone anything else if you passed away before her. If you're in your thirties and in good health and a non-smoker, you should be able to get term life insurance for really low rates (I have a $100,000 policy, am 39, overweight and had a pulmonary embolism that hospitalized me for a week, and my policy still only cost $15 a month, so if you were applying for a much lower benefit policy, say $10,000 to pay any funeral expenses, should only cost you a couple bucks a month at most, which you could ask Mom to pay since she'd be the beneficiary.) Just a thought. But I wouldn't try to do anything funny with changing the bank accouts right before filing BK, because that will raise more red flags than it's worth. Since you don't owe the bank anything, I don't see them notifying anyone of the BK, including your mother.

[dmc-2008]

honesty is the best policy

You are being honest with yourself, give your mom some credit and be honest with her too.

You need to do that for your relationship with her.

I have one daughter and I would hope she would/could come to me and tell me anything.

Good luck.

[lmb]

I know this isn't the point of your post, but I have to ask, how is your Mom having access to $150 reassuring to her? It wouldn't even pay for the flowers, let alone anything else if you passed away before her. If you're in your thirties and in good health and a non-smoker, you should be able to get term life insurance for really low rates (I have a $100,000 policy, am 39, overweight and had a pulmonary embolism that hospitalized me for a week, and my policy still only cost $15 a month, so if you were applying for a much lower benefit policy, say $10,000 to pay any funeral expenses, should only cost you a couple bucks a month at most, which you could ask Mom to pay since she'd be the beneficiary.) Just a thought. But I wouldn't try to do anything funny with changing the bank accouts right before filing BK, because that will raise more red flags than it's worth. Since you don't owe the bank anything, I don't see them notifying anyone of the BK, including your mother.

There used to be more than $150 in the account. This was our arrangement years ago. I told her I'd have enough to cover a cremation in the account.

I cannot afford an attorney for my bankruptcy, let alone life insurance right now. I agree with you in principle, though.