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JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience:  Attorney in the practice of Bankruptcy Law since 1996
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I am on my sisters checking and savings account only for the

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I am on my sisters checking and savings account only for the purpose of her death or mental incapcity. Didn't diclose it because it's not my money and I have never made any deposits or withdrawals from the account. She gave me a notorized statement stating such do you think the trustee would still make her pay towards my bankruptcy. The account only totals 23,000. Its a Chapter 13 filing.

I'm sorry to hear you are having to deal with this, and having to involve your family.

The good news it, that while it depends on what the judge in your district thinks, in my district Courts usually ignore joint bank accounts if the debtor can show that their name is XXXXX XXXXX the account for inheritance or mental incapacity and the account was NOT funded with the debtor's money nor did the debtor use the account.

Under the facts as you laid them out, you would be fine in my district, though New York may have a different view of these types of accounts.

Worst case scenario, even if the court decides it is half yours, with your half-interest in the $23,000 being $11,500, then you may be able to increase the amount unsecured creditors receive through your Chapter 13 plan by $11,500 which would allow your sister to keep all of her $23,000. This might result in around a $200/mo increase in your monthly Plan payment to the trustee (assuming you are in a 60 month Chapter 13 plan). Of course you will want to speak to your attorney about this if it comes to that, but normally you can set up a Chapter 13 plan to keep you (or your sister) from losing any assets (including a bank account) so long as the unsecured creditors receive enough money in the Plan. Again, bring this up with your attorney if the court decides that half of the account belongs to you, but hopefully they will ignore it once you lay out all the facts.

I hope this helps and a positive feedback is always appreciated if this was useful to you.

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