Can the bank take the money?

[wolfman278]

Okay, I need to see what you folks think might happen:

My mother is divorced but the house she lives in is still in her name and her ex husbands name. He took out a HELOC before the divorce and continues to use it after. Her name is on it also. In the divorce he is supposed to pay it off but has fallen behind. He is now going to file both business and personal bankruptcy. And of course include the HELOC in the filing. The bank with the HELOC is the same bank she has checking and saving at. Can they come after her for the balance of the loan? I'm sure they can and will call her and send letters, but can they pull money right out of her account.

We are wondering if she needs to close those accounts and switch to another bank. Any thoughts or feedback would be greatly appreciated.

[lillymarlene]

Just to be safe I would switch to another bank, where I had no loans or credit cards. I'm not sure but she may considered responsible since her name is also on the HELOC. Then, even if a bank can't rightfully take money out of her account, if they "accidentally" do so, it probably would be difficult to get it back.

Five years ago, my father died penniless, with a negative net worth. I still avoid any of the banks, where he had credit lines, or loans.