Joint bank account

[wfloyd1845]

Hi!

I am seriously thinking about filing Chapter 7 but one thing really bothers me and that is a joint bank account with my stepson and wife. I will be filing jointly with my wife. The bank account in question shows my stepson as the primary account holder but my wife and I have the authority to deposit and withdraw money from the account. There is enough money in the account to pay off all my debts but it's not our money to use as we see fit. We are only able to sign on the account in case of an emergency. Is this account going to cause problems if I file Chapter 7.

Thank you,
wfloyd1845 (sometime known as Poohbear)

[HHM]

No it shouldn't be a problem, but if its has a large balance, the trustee will probably want to see bank statements from the account and will need to feel satisfied that you not using the account to hide money that otherwise would be available to pay creditors.

[wfloyd1845]

Joint Bank Account

2nd part:

My wife acquired a house when her mother passed away. The house was sold in March of this year. The money received from the sale is the money in the bank account in question. I try not to meddle in my wife's financial affairs but this is different (maybe I should have). She took the money and opened the account in her son's name. My debts total about $15,000 and the account has about 3 times that much. Now again, I am still wondering. Will I encounter problems with this account.

Thanks again,
wfloyd1845 aka Poohbear

[HHM]

If your debts total only $15,000, bankruptcy seems somewhat of an extreme option to be considering.

Yeah, that may be considered gift, it was made in the last 12 months, and it was made to an insider (family member), so, yes, it could be very problematic.

Why don't you describe your overall situation because if all you have is $15k in credit card debt, you should be looking at other options.

[FloridaGirl]

I thought the trustee could go after any bank account which the filer's name was attached to. My attorney told me that it doesn't matter who's money goes into an account, if my name was on the account, the money could be taken.

What you should do, since the money in question isn't your money, is close that account and then have your wife re-open it in her name. You have to be honest about all your banking accounts, and if the trustee sees that you have an account with 15 grand in it, they could very well seize that money. But, if your name is no longer attached to the account, you don't even need to say anything about it. There is no need to feel like you are hiding assets if, in fact, you don't have control over that money.

I was worried about the money in my joint account being taken too. I wasn't working when I filed for BK, and all the money was earned by my boyfriend. I was afraid they would take the money in his account when he had nothing to do with my BK. He doesn't make that much, but we just made sure to only keep 20 dollars in the account in the few months before my 341. The trustee did ask for my bank statements, so I was glad we only kept 20 dollars in the account. She probably would have taken anything over and above that amount.

[Lightning]

Why not just take that money and pay off the debt? Your credit won't be damaged, you'll still have $30,000 in cash, and you won't have any debt. That's a win-win situation.

[wfloyd1845]

Joint Bank Account

More surprises:

After a long conversation with my other half, I have learned that she borrowed $20,000 from her aunt to help with expenses will the house was being sold. She wants to make full payment to her aunt which leaves about $30,000 in the bank account.

I am 60 years old and my wife is 61. I bring home $720.00 per month total income. My bills including rent, credit cards, household expenses and medication total about $1,500 per month. I had open heart surgery last year and also am diabetic. My medications are about $200.00 per month. We will have to withdraw between $750 and $1,000 dollers per month from this account to meet our obligations. I can't retire for another 6 years. If you check the math, and we pay off all our debts, we will run out of money in a very short time. This is why we are trying to hold on to as much of the money as possible so it will last until I retire. I did check into debt settlement and the payments would be more than my actual payments to my creditors.

Any suggestions or comments would be greatly appreciated,

Thanks again,
wfloyd1845

[FloridaGirl]

"Why not just take that money and pay off the debt? Your credit won't be damaged, you'll still have $30,000 in cash, and you won't have any debt. That's a win-win situation."

Because, Lightning, they need that money to live on for as long as it will last. What good is taking all that money and paying off all the debt if they will end up right back in debt because they can't meet their regular monthly bills? I'm sure that if wfloyd could rest assured he could afford to pay for all his medications, and his other bills with his salary, he would have already used the money in the account to pay his debt. He obviously needs to have a cushion he can fall back on every month. What is wrong with that? You think everything is just so easy, don't you?

Wfloyd, I understand your needing to have some sort of security. But unless you do something about your name being associated with this account, the trustee will probably take it. I don't think any trustee would leave 30 grand alone during a BK proceeding. You said it is your wife's money, correct? Did you and your wife file for BK on joint debts? If you filed jointly, and your wife was responsible for some of the debts, then it is only fair that some of the money be given up. If you filed only for debts you incurred, then it wouldn't be fair for your wife to lose the money in that account, simply because your name is on the account.

I think you should close the account and have your wife re-open it in her name only.

[Minnymouth]

Floridagirl,

Any attempt to "hide that money" in his wife's name now is considered "fraud"...... TOO LATE for transfers now!!!!

And yes, more than likely the Trustee will go after it if his name is attached too it.....

Doesn't sound good!!!

Have you talked to a lawyer about bankruptcy and tell him about this? What did they say??

Minny

[shi]

2 cents

To" wfloyd1845


I know this post is old but...
It's just my opinion but.

1. I would pay off the debt to improve my credit.
2. put a down payment on a home
3. and use the home as collateral to buy income property
4. repeat.
you will be able to retire in four years.
Keep doing that and you will be ok until you leave earth.