Joint saving/checking accounts

[turtle59]

If I have a joint saving/checking account with a family member will creditors come after them? Should I close joint accounts?

[lrprn]

If I have a joint saving/checking account with a family member will creditors come after them? Should I close joint accounts?

If your family member is also a co-signer on some of your debts, then yes - creditors can come after either owner of the debt. Is this the case in your situation?

You didn't say if you were planning to file bankruptcy, but if you are I suggest that you remove your funds from the joint account now and open your own solo account so that there's no doubt about whose money is whose when you have to sort out if your cash holdings can be protected by your state's exemptions.

[turtle59]

account set-up

lrprn......... Yes, I am going to be filing for Chapter 7.

Family member is not a co-signer on any debt.

Joint account was set up to help each other out in times of need, due to we are are on different costs and it's easier and there are no costs to transfer into accounts. Cheaper than Western union or wire transfer.

I'm just worried that the court and or creditors may want to take from from my relative.

[lrprn]

If your creditors get a judgment against you, then it is possible that they could clean out the entire account. You can prove that all the money isn't yours, but until that time, your family member will be out his/her money.

Again, suggest pulling your share of the money out and getting an account of your own before you file.

[JRScott]

It would probably be best for you to establish separate accounts. By doing so you safeguard both yourself and your relative and avoid any possible problems.

Edit: I'd suggest having your relative make a separate account as well. Do not close the joint account but leave only a minimum in it to cover any bank charges for using it.

[gophermn]

That is happening to me right now, in fact my attny told us to get diff accounts at different banks. My wife and I were joint on one account that had a line of credit. Well the bank is now going after her to pay off the line of credit.

So whatever you do - GET SEPERATE ACCOUNTS AND GET THE NAMES TAKEN OFF especially if there are lines of credit involved. That mistake cost me $800.