Legal Question in Bankruptcy in Florida

Bankruptcy
I am considering filing Chapter 7. My name is on my mother's bank accounts and CD's as ''my mother's name OR my name''. I do not contribute to or participate in her accounts in any way. Only in case of her or my incapacitation. She is also on my bank accounts for the same reason. Can her accounts and credit be affected by my filing and can her accounts be garnished?

Asked on 7/31/08, 12:55 pm

2 Answers from Attorneys

Matthew Z. Martell Law Office of Matthew Z. Martell, P.A.

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Re: Bankruptcy

Yes her accounts can certainly be affected. Since these accounts are titled in the way which you described above, you own them as joint tenants. Therefore, one of your creditors could legitimately go after any of these bank accounts. They can certainly be garnished by your creditors after they obtain a judgment against you. In fact, there is even such a thing as a pre-judgment writ of garnishment which allows them to garnish your bank account before they even get a judgment--although it is rarely used. You need to take your names of these accounts immediately. You also need to buy yourself some time until you file for the bankruptcy. The U.S. Bankruptcy Trustee could still go after these accounts even if your name is off them and attempt to put them in your bankruptcy estate if not enough time has passed between re-titling them and filing the bankruptcy. I recommend making minimal payments to your creditor for the next 6 months in order to accomplish this goal. In fairness to your mother, you need to take these actions as soon as possible. It is not fair that she lose everything because of your bad debts. I also recommend that you speak to a local bankrutpcy attorney immediately.

Answered on 7/31/08, 1:26 pm

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