Closing Parents Bank Account.

[seattle]

In 2007, my parents allowed me to take over one of their struggling businesses. They transfered the business to me and I agreed to a 5 year lease. They closed the business out with the city, state, fed, and I subsequently opend new accounts reflecting that I was the new owner. Since the business name was not going to change, we decided to keep my parents bank account and just add me as a signer. I know this was a stupid idea. In 2007, I couldn't continue to make rent payments so my parents took back ownership of the business, but they didn't open a new bank account. I'm still listed as a signer on the bank account even though I haven't used it since I lost the business.

November 2011, I was served a Tax Warrant/Judgement from Labor & Industries for unpaid taxes for 2006 when I owned the business.

December 2011, parents had identity theft alrets on their business account and they also wanted to change the business structure so they opened a new bank account at a different bank.

Since a judgement was issued against me and I was a signer on the old account, I told them to keep it open. The old account has a $0 balance now.

In addition to this L&I Tax Warrant, I haven't paid on 7 credit card accounts for about 2.5 years and I have yet to be sued.

I plan on filling for bankruptcy in a year. Should my parents keep the old account open? Will the fact that I was a signer on the old account impact my parents business? Will this trigger a fraud alert?

I'm really worried about parents

[tobee43]

since it's going to be a year from now, i would close any and all accounts associated with your parents. that gives plenty of time for the dust to settle prior to your filing. besides if there is nothing in the account now, there is nothing for them to take, now, or in the future, so i'm not really certain why one would keep the account open anyway?

if you were just just a signee on the account, i would think you parents should be fine, but it's hard to tell from this standpoint, i'm certain there may be a bit more to it. for now, i would just close anything that has to do with you parents and wait it out to file.

best of luck to you!

[runner4life]

There are certain criteria you have to meet to discharge taxes (income only.) YOU CANNOT DISCHARGE TRUSTEE TYPE TAXES.

[May2014]

Being a signer on an account does not make you the account owner. You need to know whether you were cross-referenced as a signer or co-owner. If you're truly only a signer, it should be a non-issue. They can remove you as a signer or close the account completely. I doubt it would matter even if you were a co-owner. If it's at $0, what can they take?

P.S.--I work for a bank and wanted to address this topic in case anyone ever stumbles upon the question looking for answers.