$100,000 bank account with my name on it?!?

[shako]

I filed Chapter 7 bankruptcy on 10/16/2005. The day that I filed, I had about $50 in my savings account, and that is the amount I listed on my bankruptcy form.

Today, out of the blue, my mother, who has no idea that I have filed bankruptcy, calls to inform me that she recently received $100,000 from her father's estate. Guess what she did with the money? She put it into a 14-month CD in my name and my sister's name.

I have no idea what to do about this. I have $40,000 in unsecured debt, and recently lost my job. I cannot access the money until at least the end of the 14-month period. Do I tell my attorney, do I tell the trustee, what do I do? My 341 hearing is in mid-December.

Any advice will be greatly appreciated. Thank you in advance.

[craigerzz]

Wow!

I don't know about you buddy, but I would keep my mouth shut and pray for the best. I don't think they have a way of finding out about it unless you volunteer the information. If your trustee wants to see your tax return for this coming year to determine if he can take your refund won't you have the interest you earned from that on your taxes? That's the only way I think he could find out.... Good Luck and 100K is a nice way to start off your post bankruptcy life.....

Craigerzz

[sunshine08]

Wish I had answer. Are you sure it has your name on it. Hope you have an attorney>

[sunshine08]

Craigerzz - I feel like I only work for food & gas, the gas is winning too ( I don't mean from the beans either)

[FLGirl]

What if your mom never told you about it?

[sunshine08]

Best question I have heard to day.
See no evil, Say no evil, Hear no evil.

[Crazy]

I AGREE...if it ever came up...claim your mother didn't tell you...She was looking out for your future interest..you assume.....If she did it after you filed and you have no knowledge..you are GOOD TO GO!!!!!!!!!!! and wait a year after discharge to do anything with it...

[StaciMM]

When exactly did she put the $$ into your name? And, are you sure your name is on it? These days, with the Patriot Act, banks, etc. are pretty particular about identifying who is depositing $$ with them.

Perhaps she means that she listed you as a beneficiary...

If not, keep in mind that a CD can be cashed in early, but there is a penalty. If you were to cash in your part, you'd still have a sizeable chunk.

[FilingOnMyOwn]

Wow thats very scary. Anyone remember that Richard Pryor movie I believe was called Brewsters Millions? Anyways I don't think that your mom could have opened the account directly in your name, seems as if to do that you would have to go the bank yourself to open the account, provide information, fill out forms, sign them yourself, etc. I did have a roommate who has a multimillion dollar trust from his grandfather that he has no access to yet and he filed bankruptcy with no problems. So I think that your mothers role in all this is that she has money held in trust for you, as the trustholder, and you do not have access to this money until the trust expires, therefore its not your money yet for at least 14 mos or more if thats what she chose to do. The timing is not your fault, and I assume you were completely honest at the time of your filing, so you are probably best to ride it out and hope for the best. Worst case scenario is you lose your half of the 100k, but at least you'd still be debt free right?

[mmcconn2]

I would not say anything, did you sign anything with the Bank? If not and your mom did not open this account using your and your sisters social security numbers the interest will report under your mom's SS# and you both are probaly listed as beneficeraries not owners of the CD.

[Minnymouth]

Call and ask you mom if the CD is in her name with you and your sister as benficaries?? If so, you are safe!!!
If in your name and ss#, you may have a problem! Really depends on when the CD was bought ad whose name it is in!!!

Let us know what you find out...
Minny

[Lightning]

Since you just filed a few days ago, I'm guess you haven't had your 341 meeting yet. When the trustee swears you in and asks if anything has changed with your finances, you'll have to say "yes". Lying under oath in court would be a very unwise move.

[shako]

Thank you all, for the advice.

I called my mom to get some clarification on the whole matter, and she said that she did indeed put my social security number on the account. Half is in CD's, and half is in a regular old savings account.

She opened this account on October 20th, 4 days after I filed, and it is a joint account between my mom, my sister, and myself. My mother requested that my sister and I only use the money in the savings account for emergencies. (What?)

Can I ask her to take my name off the account for now, and then put it back on in a year or so? Would that be a fraudulent act? If I ask my attorney about this, is he obligated to report the account to the trustee?

Thanks again, everyone.

[StaciMM]

Not sure of the bottom line answers to your situation, but at least the account was opened after you filed, and if needed, documentation would show the $$ came from your mom rather than you.

[Genenco]

Yes, I think that's right.

When exactly did she put the $$ into your name? And, are you sure your name is on it? These days, with the Patriot Act, banks, etc. are pretty particular about identifying who is depositing $$ with them.

Perhaps she means that she listed you as a beneficiary...

If not, keep in mind that a CD can be cashed in early, but there is a penalty. If you were to cash in your part, you'd still have a sizeable chunk.

I think that is correct. I had a HECK of a time putting my check in with my mothers account (Temp support) and so I very much doubt this is "Actually" in name, but as beneficiary.

Still...Nice mother there...Can you adopt?