Bank Account in Mom's Name a Problem?

[nodinero]

All:

Thanks for your help in previous posts I've made. My attorney filed Ch. 7 for me today, we'll see if it goes through.

I was looking at some posts about Trustee questions. A while ago the IRS levied my bank account, so I went to open a different one at a different bank, and low and behold I was on this Check Systems list for a bad check, and they wouldn't open an account for me. My employer at the time ONLY did direct deposit, and my retired mom was in town visiting. I asked her to go down to the bank and open the account, using my address (heck, she stays with us 10% to 15% of the year anyway), and order a debit card. I gave the account to my employer and my check goes right in there. I've been using the debit card and online banking now for almost two years with nary a problem. (By the way, at this time I was under the counsel of a Bankruptcy attorney who was also a Trustee in our district who told me to do this).

Anyway, I told my new attorney about this, and he didn't bat an eye. He also didn't list the account on the petition.

So, I was reading the questions that a trustee can ask, and I was thinking how to answer the bank account question. I can say that I don't have an account - and that's true. And I wonder if he'll ask where my pay goes? If he does - what should I say?

On the one hand I don't want to seem or *be* fraudlent, but I am just trying to live life here, and you pretty much need a bank account here in modern society. My mom doesn't mind and it seems to work out well.

Advice? 341 should be in early November...

[Blue_Tech]

Its up to you. You know the honest thing to do.

The only people who could really care about where your money is, is the creditors themselves. If you had just started another account in your own name, they could have levvied that one as well.

When my g/f filed BK after her accounts were levvied by Capital One, she started a passbook savings in her daughters name, and used that account for check cashing privileges and what not.

I would tell the trustee, be up front. He knows you need money to live. Everything you are doing is legal. It would be like me depositing my checks in my g/f's account, and then she writes checks for my exspenses.

[Minnymouth]

You didn't say if your name is the main name on this account or are you on a joint account or just an authorized user???
If you name is on the account - its your account..... If it is a joint account - 1/2 of it belongs to you. If you are just an authorized user and the account is in someone else's name I don't believe they can seize it.
I would let my attorney know about it.....let him make the call on it whether it should be listed or not.
When your petition is turned in - you don't want it to look like your trying to "hide" anything. Especially cash..... Which most of it would be exempt anyways (unless you hit the lotto)...

Minny

[nodinero]

Thanks for the replies.

I'm not listed as a joint account holder, an "authorized user", or anything. It is a sole account in my mother's name. Nobody asks me when I use the debit card, and I have her sign a bunch of checks for me at one time...

I told my attorney about it, and he elected not to list it on the petition - is that OK?

[Minnymouth]

hmmmmmmmmm,
You say Your checking account is in your mother's name only and she signs the checks for you??? Correct???
When the Trustee asks you to produce your statements of accounts (checking and savings), what are you going to tell him??? If you have to "come clean" it will look like you are hiding assets.... which could cause a possible dismissal of your case...
If you shared that account with her and you name was "on it" - that would be different.
Often the trustee will ask for receipts for paying your bills....electric, water, etc... and all you can produce is checks from your mom's checking account??? Not a good thing.....
Also all your deposits are going to your mom's checking account....... and your not on it as a "joint account" or "authorized user".....
Be very carefull of hiding where your money is......
You say your lawyer didn't list it on the petition! Mainly because it is not legally yours - it's in your mother's name and her account.
I'm not sure of the outcome of this if the Trustee discovers it - could dismiss your case - could not be important at all.....depending on the Trustee.
But if the Trustee "thinks" you are "hiding things" it could be a bad situation...

Under the old laws the Lawyer is "not responsible" for what is in your petition.....
Under the new law - he could very well be held accountable for helping hide your income... or a hidden checking account.

Just my thoughts,

Minny

[nodinero]

Thanks for the post.

I've decided to just be completely honest and turn in my "mother's" historical statements (that come to my house) as my own if asked. And, even though I filed this week, last weekend I was able to finally open an account in my own name (had to, to do a cashier's check for BK Attorney). So, I'm going to change my direct deposit, etc. to go to that account. That will allow about six weeks and hopefully one statement in my name to be generated, and then I will just be truthful about why I did all that in my mom's name, if it comes up. Trustee can have all statements if he asks for them.