Legal Question in Bankruptcy in California

Mother's accounts affected by my possible bankruptcy?

Upon the death of my Dad,18 months ago, my signature was added to my Mother's savings and checking accounts to insure that I could arrange funds for burial, upon her death, and pay off any debts she might owe at the time of death.

If I file for bankruptcy, would I need to list my Mother's accounts as assets? Could her funds be in danger of being attached?

Would I be in danger of committing fraud if I had my name removed from her accounts before filing for bankruptcy?

[She lives soley off Social Security, a $35.00 a month pention and a few thousand dolloars in savings and bonds. Upon death, her only expected debt is the remained on a car loan.] expected debt

How are Federally Guaranteed Student Loans treated in banckruptcy?


Asked on 1/10/98, 11:09 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Mother's Accounts Affected by BK

If you have an interest in your mother's account it must be listed as an asset. Depending on how much is in the account, and the values of your other assets and which set of exemptions you choose, it may or may not be subject to liquidation by the Trustee in a chapter 7. Removing your name from the account might be considered an avoidable transfer by a Trustee and should be avoided although there may be a safe way to do that.

As for the Student Loans, they are generally nondischargeable, with certain exceptions (such as if they are over 7 years old with no forebearance or deferments).

You have a lot of questions that really require more exploration into the specific facts before adequate legal advice can be given. If you live in the Los Angeles area and are still in need of bankruptcy counsel, feel free to visit my web page and give me a call.

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Answered on 1/15/98, 4:51 pm


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