Legal Question in Bankruptcy in California

Can the bankruptcy court go after all Joint Accounts?

Hi,

I am considering filing Chapter 7 bankruptcy. Although I have almost no assets, I am party to several joint account with my mother. One of these accounts is a stock marked account worth more then by debt. I have had nothing to do with this account, my name only appears on the account so that I could access it if something should happen to her.

Will the bankruptcy court be able to go after this money? If I take my name off this account before filling, would this be considered fraud?

Thanks so much for any information you could give me.


Asked on 5/06/98, 3:10 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Can the Bankruptcy Court go after all Joint Accounts--REPLY

Hello. Your facts are a little hard to understand, but I think I can give you some answers. First of all, bankruptcy courts don't go after anything. In a Ch. 7 a Trustee is appointed to liquidate all non-exempt assets of the debtor (you). If you have rights and entitlements to the joint accounts, they are assets of yours. However, depending on what they are worth and what the value of your other assets is, you very well may be able to exempt it all. Taking your name off the accounts within one year of filing the bankruptcy could be considered fraud. I suggest if you live in the greater Los Angeles area and need legal representation, that you visit my website, below, and give me a call for a more comprehensive consultation. Best Wishes,Mark

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Answered on 5/22/98, 6:58 pm
Ken Koury Kenneth P. Koury, Esq.

No need to worry

There is a place on the bankruptcy forms to list property that you are holding that belongs to someone else. I think these accounts would qualify as that. If it is true that none of your money is in the accounts you should be OK with that.

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Answered on 5/23/98, 4:48 am


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