Legal Question in Credit and Debt Law in New York

Re: Collection of joint assets

The complete answer is that the entire account can be restrained by a judgment creditor for up to one year. The bank cannot release the funds unless the judgment creditor obtains a COURT ORDER pursuant to a TURNOVER PETITION it has to file. The petition informs the court that a judgment was entered against a party who jointly owns a bank account with two others...the petition asks the court for an Order authorizing the bank to release the funds to them...but the law is that while each joint owner is presumed to own the account (each owner could withdraw the full amount), unless the judgment creditor can prove otherwise, the court will only allow 1/3 of the funds to be released by the bank. At least that is my experience when I file a turnover... unless the creditor can prove what percentage of funds belongs to the judgment debtor (in excess of the presumed 1/3) the court should only allow 1/3 to be seized. Note that ALL parties must be served with the papers, all three joint owners and the bank as well. If there is not alot of money in the account it may not be feasible to bring the petition.

Re: Collection of joint assets

This is a problem - the creditors can take 100% of the joint account. Even if you move the money out, you must still protect yourself because the creditors may follow the money as part of the other guy's "estate".

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Re: Collection of joint assets

Another factor to be considered is ..where is the account located. If the account is in Fl, and the bank has no NY connection, then Florida exemptions may apply.

Re: Collection of joint assets

The law in New York is that all names on the account are presumed to own the entire account. The entire account may be restrained after judgment.

Good Luck

RRG

Re: Collection of joint assets

The same in Florida.