How are savings bonds treated in bk?

[twuoo]

I have some savings bonds that in my child's name and name is on them as well as a co-signer. Would the trustee take the bonds from my child?

[BKOnce]

If bonds can be redeemed (cash out), then yes. If not, then no.

[JollyGG]

Depends on the trustee for your case. However, there is a space on the BK petition for "Property held for another person - List all property owned by another person that the debtor holds or controls."
This is where the savings bonds that are in your children's name would go. I would think that this would mean the savings bonds are safe as they are not yours. However, this may be one of those things that different trustee's view differently.

Our children have savings accounts and on our petition they were listed under that section and not on our personal property list. No one ever said anything about them.

[jal1129]

I think it would also just depend on the trustee. Also the amount of the savings bonds and when opened. If its a relatively small amount and you bought them awhile back the trustee may not say anything. If its a large amount or recently purchased that might be another story.

[twuoo]

I think the bonds are over two years old now. Cash value might be around $2000-ish.

Should I be cashing them out? Or would that be hiding assets?

[BKOnce]

If sold, then hide $$ ==>> fraud

If sold, then buy new bonds again (with new/not matured date) ==>> still fraud

Best option ==>> just leave and ask your attorney what to do with it. They might ignore!?

[CATCHMEIFYOUCAN]

If you CASH them out than it would become the property of the BK. However if you leave them as is than I dont think the Trustee cares. I don't think they can FORCE you to cash them out, just like a 401k YOU KNOW. They can't force you to withdraw your 401k (GAWD the tax liability you would pay!).

Best of Luck, CMIYC

[JollyGG]

If you leave them as is and list them as property held or controlled by you for your minor child they are likely to be left alone. If you cash them out the trustee may want to know what you did with the cash. You will have to either spend (on necessities) or exempt the cash. To me they will be easier to deal with as saving bonds that belong to your children.

[CindyLou]

If you have not yet filed and cash them for required living expenses then it is not fraud. But check with your attorney, they may be ok with your trustee as property you are holding for your child.

[demismom]

Whoops - I completely forgot about these - my daughter got 3 of them from relatives when she was baptized. I didn't list them, we haven't filed yet, but we're close, we've already signed the petition. Should I call my attorney?

[lrprn]

Whoops - I completely forgot about these - my daughter got 3 of them from relatives when she was baptized. I didn't list them, we haven't filed yet, but we're close, we've already signed the petition. Should I call my attorney?

If your name is on the savings bonds, then it's worth checking with your lawyer to see if they need to be included. If your name isn't on the bonds, then they aren't yours and aren't involved in your bk. No need to call your lawyer in that circumstance.

Frankly, unless their combined value is more than $1,000, it's doubtful that the trustee will care, even if your name is on them along with your daughter's.

[tofargone]

We were told that unless it was in our names ( including childs savings and college accounts ) then we didn't have to list them. My kids have 20K plus each in college funds ( mostly put in by their great grandmother ) and they both have about $500 in SB. Since I don't own them and can't easily access them we left them off.

[demismom]

Thanx - I'll have to look - I also completey forgot about my daughter's savings account, my name is on it because she's a minor so they told me a guardian's name had to be listed. Man - I can't believe I forgot these things.

[sarakay5]

We have both a savings account for our children and savings bonds. The savings account was listed but I had also forgot about the bonds. At our 341 we were asked about any other assets and I remembered the bonds. Trustee asked who purchased them and whos name was on them. They are all in the boys names first and in mine second. Grandparents purchased them during Christmas and Birthdays.

We were told that they did not need to be listed and as long as the boys savings accounts didn't suddenly increase significantly everything was fine.