OMG- Just realized on moms ckg acct..

[klandsb]

I just remembered I am on my mom's checking account. Went to the bank yesterday to take my name off before it all becomes official about the bk...
Of course it's a hassel. She has to actually close her account and start a new one. No big deal , except that she is 80 yrs old and is freaking out because her SS income & her sm retirement income goes into that account. I am stressed because I have caused this HUGE inconvience for her..
I am just glad it will be taken care of now instead of them doing something to her account for my bad credit.
Do u think it will raise a red flag for the trustee to see that this account was closed right before I file bankruptcy ???? It can be easily explained I guess..
So many things to think about ...

[AngelinaCatHub]

Yes you are both owners of that account as far as the bank is concerned. She must renew another account. I would bring this to the attention of your Trustee with explanation before he asks you about changes or list it as property you hold that belongs to other people. There is a place in the forms for that item and put into the paperwork the fact that you are your Mother's caretaker and were on her account. Best thing I can think of now. Others may have some added or better ideas. 'Hub

[AngelinaCat]

I am going to disagree with 'Hub a little. Do list the account in your paperwork and list it as CLOSED, but do NOT volunteer any information to the trustee at the 341 unless and ONLY IF you are asked.

It is doubtful that you will be asked. It is common to close accounts all the time--especially when a checking/savings account and credit cards and/or loans are housed at the same institution. Closing a checking account and moving the money to another institution keeps the original bank where the ccs are from raiding your checking/savings account when you stop making payments on your cards. The same goes for automobile loans and mortgages. This is called cross-collateralization. You don't want your mom's account to fall victim to this.

If you are asked, tell the truth, it was your mother's account and your name was on it so you could handle her affairs.

Good luck to you and your mom.

[forgotten]

It will need to be listed as an account you have closed in the past year. The situtation is not that unusual, and your explination should be good enough. If none of the money in the account was ever really yours, shouldn't be a problem.

You may want to have your mother sign a power of attorney and have your bank notorize it. They are more comfortable about accepting it if they are the ones who notorized it. That way you can still act on the checking account on her behalf if you ever need to (which is why I assume you were on the account to start with).

[UpsideDownMI]

Have you ever put your funds in the account? If not you should be ok regardless of what you do. I am in similar situation. One attorney told me to not do anything, just list the account and declare our value as $0 on schedule b. Another attorney said to have father in law withdraw his funds and deposit into different account while leaving the joint account open. Both attorneys said for my wife and I not to anything in regards to closing or moving money from the account to avoid problems. They also said that we never contributed or accessed the account the trustee would never have a case to go after the account. It is a terrible spot to be in. Best of luck to you!

[fooked]

I'm in the same boat... mother's a widow and I went on the account 20 years ago... one of my brothers is a signer as well... I've never done anything on the account, it was done as a "just in case" thing...

I was advised by the attorney I retained to have the account brought as close to zero as possible the day before I file..

I'm not doing anything shady... just don't want my mother's account involved... she's been in the hospital over 7 months now and her only income is disability...

[AngelinaCatHub]

It will need to be listed as an account you have closed in the past year. The situtation is not that unusual, and your explination should be good enough. If none of the money in the account was ever really yours, shouldn't be a problem.

You may want to have your mother sign a power of attorney and have your bank notorize it. They are more comfortable about accepting it if they are the ones who notorized it. That way you can still act on the checking account on her behalf if you ever need to (which is why I assume you were on the account to start with).

Very wise idea. Make it a "Durable Power of Attorney". Not all POAs are the same. The DPOA gives you full leave to do her affairs in any way including entering a safe deposit box if needed. Many POAs are limited. 'Hub

[DSIG]

List it with a zero balance and if you can bring statements to the 341 meeting to demonstrate that the deposits are your mother's income and not your income...only if you are asked, that is

[larryrose]

Similar problem.............
Last fall when I told my mom I was going to file bk she said she was going to take my name off her checking account. I called her yesterday and found out she did not take my name off her account. She tells me that I don't have access to her account unless she is dead so it wasn't necessary to remove my name from the account. I have no idea what she is talking about. We live in the same state but about 200 miles apart. What should I do now. I filed chp 13 last week and did not mention this account to my att. Should I tell my att about this?

[klandsb]

Mine is a little sticky because we both bank at the same bank and both of our accounts have overdraft protection on them... Of course mine is almost maxed out and will be included on the bk , and her's has not been touched. When I look up my account online her acct is showing up under my name... That is what really scares me..
I know the bank w/probally close my acct immediatly after I file but I dont want them screwing around with her acct & her money.......

I went last week and opened up a new acct at a new bank and changed my direct deposit for my payroll check, Now I know why people say plan well for your bankruptcy.. I never gave it a thought ...

[dirtpoor]

My wife is on her mothers's checking and savings account as is her brother. It was not questioned during the 341. Our attorney advised that since we had her bank statements and they show we have not received any benefit from her account, it was not necesary to have her name taken off the account. The attorney also put an explanation in the paperwork that the only reason for her name being on the account was in case her mom would become unable to make decisions on her own.
So far so good...

[klandsb]

I guess because we both bank at the same bank is what concerned me...
I figured it might be a case of cross collateral ????

[rrockinggramma]

banks as a rule do not cross collateralize only credit unions.

[StartingOver08]

banks as a rule do not cross collateralize only credit unions.

True. But they will offset this account with the overdraft fees in klandsb's other account if he closes the other account in the red.