Shared Bank Account - What to Do?

[Gab]

I am thinking about filing bankruptcy, maybe next spring. My mother, who is mildly demented at 91 years old, can no longer handle her finances. She added me to her bank accounts a few years ago so that I can write checks for her and move her money (generally from savings to checking, rarely the other direction) for her.

In a bankruptcy, would my mother's rather small bank accounts be considered to be mine, or half mine, even though they are not really mine? If so, this will be a stopper for me. There is no way that I want my mother to lose even one cent due to my not managing my own finances as well as I would have liked to do.

I retired earlier than I planned, which is why I am struggling financially. I retired in order to take care of my mother, not very long after my stepfather died.

I have $92K+ in debts, with $52K of it secured by my manufactured home. My outgo each month to pay bills and buy groceries, etc., is about $200 more than my income. Therefore, I'm using a credit card to make up the difference.

My mother has three children and three stepchildren, all of whom will be heirs to her tiny bit of money and her little house. I live the closest, and I'm the oldest, so she tapped me to handle her money and to arrange things for her.

I can see a way to avoid bankruptcy, but it continues the pain for quite a few more years. Any advice would be helpful.

[chassm]

If you're just talking about a regular bank account, more than likely this will be exempt anyways especially if there's not a big balance in it, and since you're not the primary account holder, I really doubt the bankruptcy trustee will come after it. Typically if you're filing chapter 7 bankruptcy, which is when your assets are liquidated if you have any, you will have exemptions in dollar amounts to what you can keep and what can be liquidated, but also in most chapter 7 cases the filers are so broke that the trustees don't really bother to look for any assets. Now, of course you must check with a bankruptcy attorney to make sure that anything you have that's considered an asset, you can keep.

If you're still paying for your home and your car, you can surrender them in bankruptcy to the lenders, but if you decide to keep them you'll need to keep paying for them.

I hope that helps,
Good luck.

[AngelinaCat]

Dear Gab:

My heart goes out to you in your situation. I took care of both my mother and aunt in similar circumstances. The major difference was that as an only child, I didn't have to worry about brothers and sisters and the potential problems that can arise there.

My best advice right now is to go to nolopress.com and purchase the Ch7 book. It is written in fairly plain English and has a good section explaining the difference in property that is yours, and property that is not yours, but that you are taking care of.

They have a downloadable online version and a print version and the price is about half of what the price in a retail bookstore is. The downside to the online version is that if you want to study a section away from the computer, then you have to print it. If you decide to purchase the book, if a 'freebie' is offered, be sure and take that too.

Good luck to you, and please check in and let us know how you are doing.

[AngelinaCatHub]

We learned the hard way. There is no Primary owner of a joined bank account. When she added you on, you are 100% owner as well as she is 100% owner. The only way to get you off this account is, She must close the account and reopen one. In her own name you can sign her checks if you get her to sign a Durable Power of Attorney.

Unless these monies are so small, you own it as much as she does. I had to have a 2004 hearing over this very thing. I now have to pay back the monies I owed my gdaughter due to the fact that I was on her account. She could open another account and you transfer this money, but be careful as you do not wish to look like you are hiding it. The P.O.A. would have been the best for more than financial reasons. Within her case. ‘Hub

[junker]

i was told by a bank, if you are a poa they dont need your ss number and you are just listed on acct as a poa. so judgement creditors cant go after their acct if they have a judgment against you

[debtfree32]

Well, Im no legal expert but I have the same problem and my lawyer told me that they consider whatevers in the account as half belonging to me. Example: If theres 1000.00 in the account and if the trustee were to seize it for some reason, he can only take 500.00. But most likely he will not, my lawyer told me that I can exempt 10,000 in personal property and any bank accounts can be included in that.

[MomIcantFindmy]

I would consult with a local attorney. They are the local experts on how the trustees view things. We claimed our minor daughters accounts and that we were just on them because they were minors. The trustee did not even care about those accounts even though one had over 1K in it. I produced statements but in the end it was not an issue.

My thoughts.....if your mother passes if you are receiving ANY money for 180 days after you file the trustee can take that. (At least that is how I understand it, that may be different by area also). Also if you must claim her bank account and income then she would be considered in your household means test which may or may not help.