Question: How are joint bank accounts affected by my husband's bankruptcy? What about a savings account that has always been in my name only?
Answer: The answer depends on whether or not the joint bank account has money in it, or if it's in overdraft. If a joint account is overdrawn, the bank may freeze the account in a bankruptcy, which then impacts on both account holders. The bankrupt person is no longer responsible for the debt, but as the co-account holder you would be responsible.
Most trustees recommend that you open a new bank account at a new bank (where you don't owe any money) prior to filing bankruptcy. That eliminates the possibility of your existing bank freezing your account.
If you have a savings account that is in your name only, it should not be impacted by your husband's bankruptcy.
Answer: The answer depends on whether or not the joint bank account has money in it, or if it's in overdraft. If a joint account is overdrawn, the bank may freeze the account in a bankruptcy, which then impacts on both account holders. The bankrupt person is no longer responsible for the debt, but as the co-account holder you would be responsible.
Most trustees recommend that you open a new bank account at a new bank (where you don't owe any money) prior to filing bankruptcy. That eliminates the possibility of your existing bank freezing your account.
If you have a savings account that is in your name only, it should not be impacted by your husband's bankruptcy.
Labels: bankruptcy
posted by Questions @ 12:49 PM
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