Filing Chapter 7... Question concerning BofA

[Midiman]

Hi... first post, first BK

My 85 year old mother has been with BofA for over 35 years, and myself for roughly 20. As she got older, she listed me as a cosigner on her checking account so I can have access to her funds once she passes.

My wife and I are filing Chapter 7 in 90 days and for health concerns, we don't want her to know about this. The disappointment would hurt her emotionally and possibly worse. Since BofA will be burned for about $9,500, is there any reason why they might contact her, either for possible payment or disclosure?

Thanks

[pcn]

I would search for more information regarding cc and savings/checking at the same bank. From what Ive read there would be some concern that they would tap into your/her checking to pay your cc debt. What did your lawyer recommend? What I see most often is people recommending to close that account. Could that be a problem since it's a joint account?

[music12]

it would depend on how exactly the ownership of the account is set up. you said she made you a cosigner. did she add your name to the account as a joint owner? or are you just allowed to write checks in her name in case something happens?

if you are not listed as an owner on her account, then they shouldn't be able to do anything. they cannot contact your mother about your debts. in fact, once you file bk they cannot contact you about your debts either because of the stay.

with that said, the safest thing would be to close these accounts, though you'd have to come up with a believable story to tell your mother that would convince her to change banks after 35 years...

[bk4sky]

how del are you on your BOA accounts? have you retained a lawyer yet? If i were you, to be on the safe side retain a lawyer right away and call BOA with your lawyers info.

yes and also advise your lawyer about the situation right away and see what he says.

[Midiman]

Thanks for the replies,

My BK lawyer doesn't know yet. I tried to contact her but she had already left the office for the weekend. I honestly didn't remember that my mom did this until after I saw a related thread on this forum. Thank God for that! I most likely am a joint-owner on the account. And yes, closing this account would be impossible. All of her financial net worth is tied to it, and it's substantial. I think I need a new plan. My wife and I are not delinquent yet on any accounts. Roughly 3/4 of our debt is with Chase.

[TEW]

BOA has been one of those that will try to take money from your accounts. But since this really not your cecking account I wouldn't think they would try it.

[music12]

any account that your name is on is at risk. at least half of this joint account would be considered yours by the bank automatically, and possibly by the trustee also, though to the trustee you could explain that it's not really yours (the bank won't bother to listen to you). take your name off and find out from the bank about pay-on-death instead. if you can, then wait a year after you took your name off and before filing so you won't have to explain this seeming "transfer" of assets. if you can't wait, still take your name off before you file! don't put your mother's accounts in danger, you'll never forgive yourself.

it would be easier to explain changing the setting up of the account to your mother; you could say some friend advised you to do it, or even cite suze orman who tells people NOT to put their kids' names on their property.

good luck

[Midiman]

Thanks for the advice...

I'll find out tomorrow what my exact status is on the account. Let me ask you this... Under Chapter 7, even if we disclose the BofA debt, what if we left them OUT of the bankruptcy?

For $9,500, I'm thinking the benefit might be worth it, and we could pay it off within a year or two. Between the two of us, there are two checking accounts, two Visa Cards, and a small Investment account. Too risky? What would or could they do when they find out? (and I know they will eventually )

[bkmaggster]

Thanks for the advice...

I'll find out tomorrow what my exact status is on the account. Let me ask you this... Under Chapter 7, even if we disclose the BofA debt, what if we left them OUT of the bankruptcy?

For $9,500, I'm thinking the benefit might be worth it, and we could pay it off within a year or two. Between the two of us, there are two checking accounts, two Visa Cards, and a small Investment account. Too risky? What would or could they do when they find out? (and I know they will eventually )

Unfortunately, you cannot leave a debt out of chapter 7. Do you have enough exemptions to exempt your moms account?

[OhioFiler]

Unfortunately, you cannot leave a debt out of chapter 7. Do you have enough exemptions to exempt your moms account?

I wouldn't recommend exempting assets that are not yours. It's common for children to be listed on bank accounts with elderly parents and the BK court will recognize this.

Frankly, I don't think your mother's account is at risk with BofA either.

[pcn]

Why even put her finances even remotely at risk? I've read posts hear about BOA moving savings funds to pay outstanding cc debt once bk was filed. The term I keep seeing is cross collateralization. What I've read so far, (and the two articles I quickly found below,) would make me find out without a shadow of a doubt, from a lawyer, the status and relationships of those accounts.

http://ezinearticles.com/?What-is-Cross-Collateralization-Anyway?&id=1770991

http://www.legalhelpers.com/bankruptcy-articles/credit-union-loans-article.html

[bk4sky]

Thanks for the replies,

My BK lawyer doesn't know yet. I tried to contact her but she had already left the office for the weekend. My wife and I are not delinquent yet on any accounts. Roughly 3/4 of our debt is with Chase.

well you need to discuss it with your BK lawyer on Monday

when you file chapter 7 and you are including this account you are worried about in your BK i dont think they can come after your stuff.

good job tho on not letting it fall delinquent until you know what to do. Talk to your lawyer on Monday 1st, it might not even be something you have to end up doing to the account, i really hope you dont have to do anything, i can imagine how hard it would be to start bringing up this stuff and your mom is gonna know that something must be going on.

When i was filing they asked if i was on the names of any property and i got so scared cause my dad has a 2nd home property and i was super worried i was on there and would have to bring it up, but when i asked my mom she said that no i was not listed on it, what a sigh of relief, cause my dad knows nothing of my chapter 7!

[Midiman]

Yeah, if I am a joint-owner, BK may not be possible. She's really intuitive and smart and the disappointment would be devastating. Even the idea of needing to change the account's ownership would bring up a red flag immediately.

I'm glad your Chapter 7 steered clear of your dad. It's difficult when parents become possible targets. We want to handle this responsibly too. It isn't the end of the world, and we can honestly say that the debt was incurred through no fault of our own. Medical issues and short-term unemployment are just part of life. Thank God the credit was there when we needed it.

I'm calling the bank this morning before work. I'll have an update soon.

Thanks to all...

[Midiman]

That was simple... BofA was very helpful.

I am a joint-owner on an account... worth more than I've made my entire lifetime. I'm really humbled right now. Any suggestions on what to do?
Debt is approximately 37k. I don't think BK is an option.

[LuciluS]

Since BK is out of the question, I Think your only option is to try to settle with your Credit Card Companies for an amount lower than your balance.

I would scoot on over to the Collections Section on this Forum and start reading posts. One posted yesterday he/she settled Amex for 10% and, to my knowledge, they are the toughest to deal with.

Just a suggestion.

Luci