Legal Question in Bankruptcy in Maine

Re: dependent's savings accounts

That's a really good question and your answer is a resounding and utterly unsatisfying IT DEPENDS.

In general:

"Cash on hand" means cash, not bank accounts.

A simple bank account is generally held jointly between a child and an adult even if the child has control of the funds in the account. If the Debtor is the adult who jointly holds the account with the child, then the funds in that account would actually be under the control of the Debtor; they are not "cash on hand" but they are assets that the debtor may have to report on his or her bankruptcy petition schedules.

If the account is set up as a Uniform Gift to Minors Account (often called a UGMA or UGTMA), then the funds are not under the direct control of the Debtor and that is generally not considered to be Debtor's asset, though Debtor may still have to report the funds on the petition schedules.

If Debtor moves money from a simple bank account to a UGMA, there may be a lookback period, which means that if Debtor files a bankruptcy petition during that lookback period of time the Trustee can still take the funds as an asset of the bankruptcy estate that is available to pay creditors. Check with your attorney as to how long any lookback period may be.

HIRE A LAWYER if you haven't; bankruptcy is NOT something you should be mucking around with on your own. If you cannot afford a lawyer, check with your state or county legal aid system; Maine, I believe, has a civil system set up to help people who need legal help but cannot afford to pay. If legal aid is not listed in your local phone directory, call the Public Defender's office in your county and ask them how to contact legal aid.

Good luck.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.