What happens to your money in "savings" accounts when you file?

[HAP]

Not a retirement account or anything like that. I had opened up a "Fat Cat" savings account for my 6 year old son about a month or so ago, the balance is about $287. Most of this money was given to him from his grandparents for doing well in school, birthdays, etc. Can the trustee take this when we file since it is not money that originally came from us (mostly)? I'm on the account but only because the credit union rep suggested it so I could withdraw money for him if we needed/wanted to.

Also, in our checking account we have about $3,500 right now which was leftover from a consolidation loan we got back in July (and then I got fired at my job in August) and I still haven't gotten a job - so that money has been supplementing paying our bills every month since I'm making about $1000 less per month collecting unemployment wages. I've just been able to make is stretch this long but I don't think it will last more than another couple of months (but we hope to file by Feb. 1st at the latest).

If we were to file in NC, do we need to just go blow $3,300 on "living expenses"? Do I need to pay off the one car we were maybe going to reaffirm (has a $2,600 balance)? Not asking about advice to commit fraud, just wondering what we need to do legally.

Thanks for the advice again.

[mcdulph]

You need to ask your attorney this question. He or she will know exactly what pre-filing actions will or won't "fly".

With thousands of dollars in question, you absolutely need to consult a professional.

Good luck.

[FreshLikeADaisy]

HAP, NC state exemptions are pretty generous, so you may be able to keep all or part of that depending on what other assets you are going to be exempting. But for those whose states do not have generous exemptions, or who have more assets than their exemptions cover, the idea is to not have that sitting around in a bank account on the day you file for bankruptcy, which is why you will probably hear some conflicting advice on that. McDulph is right, your attorney would be able to narrow in on exactly what you can expect to keep much better for you.

[HAP]

Thanks again for the advice. I hope to retain our attorney next week. Just waiting on the final couple of paystubs I need from some temp jobs I did a few months ago. After worrying about getting my husband's last 6 months of income printed out for us, that was the easiest to get (got it yesterday). Need about two more copies of some bills and I think we'll have all the initial paper work the attorney requested of us. Wish us luck!

[FreshLikeADaisy]

I'm so glad you got the paystubs, I was wondering what happened with that! Good luck next week!!!

[emoney]

If you own the account, then the proceeds in the account are the property of the BK estate. So you personal bank account will go to the trustee. Your son's account, if he owns the account, would not be touched.
regards,
emoney

[HAP]

Aside from the exemptions Daisy spoke of above I assume? I don't know how much a 6 year old can own an account but it is a savings account for a child with both our names on it. I should be retaining the attorney this week so I'll let everyone know what he tells me.

Thanks again.

[emoney]

How was the account opened. Get the documents from the bank and they will tell you who owns the account.
regards,
emoney

[JollyGG]

I can't address the checking account as I am not familiar with your states exemptions. But I can tell you what they did with my kid's savings accounts. Both my kids had account that were the same as your kids. Birthdays, christmas money ect. They each had about $250 in them. It was in their and my name.
There is a spot on the bk petition for "Accounts held for another person". My lawyer put the kids accounts in this section and nothing further was ever said about them.

[HAP]

Thanks JollyGG!

[pa308]

I have UTMA accounts for my kids and i assume they would not be touched.