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Nena 11

Junior Member
What is the name of your state? PA

I had my first meeting with my attorney where we were asked to list everything we owe and have.

I totally forgot to mention that my mom (who is in another state) have either an IRA, a savings account or CD (meaning, some sort of savings account, not sure which) in which she lists my sister and myself as the "owners" of the account.

My question is.... that money really is my mom's. It is not mine or my sister's. It's just something my mom put in our names but only to be used if something ever happened to her - that way we'd have $ for her expenses.

Would that be an asset? And would I need to notify it? what if I don't? Can the Chapter 13 not be done because the amount in the account is equaled or more to my amounts in debt? Could they take that money and use it to pay off my debts? Do I need to tell my mom, she doesn't know that I'm doing this?

I need some advice.

Thanks.
 


Nena 11

Junior Member
PA

Correction. My mom has me and my sister as the "owners" of a Certificate of Deposit and a savings account (both). But the money is really hers. How does that affect my filing a Chapter 13? And should I list that as an asset? I don't want the Trustee to come after me!
 

bigun

Senior Member
You better tell your lawyer now.
Is your mothers name not on the account at all? Whose ss# is used to report to the IRS?
 

Nena 11

Junior Member
PA-

That's the thing. The accounts are in PR, where she lives. From what I know, her name is on one of the accounts and not the others. She does not need to file to the IRS as PR is not a state. She, however, does have to file to the state and I'm sure she mentions that.
I do not want to tell her about my bankruptcy at all, but I will tell my lawyer. I hope they don't count that money as an asset, because it really isn't.
 

Ladynred

Senior Member
Your mother needs to set you and your sister up with limited power of attorney on those assets in case anything happens to her. People make this huge mistake of putting their kids names on accounts 'just in case' and its not a good idea. A limited POA will allow you and your sister to take care of her and her expenses WITHOUT your names needing to be ON the accounts.

However, it does present a potential problem so you do need to tell your lawyer.
 

Nena 11

Junior Member
Ok... Can this be done before I file bankruptcy? I haven't filed yet, but I have filled out all the paperwork with my attorney. I don't mind her changing all this and giving us a limited POA, but is this going to be suspicious - I mean, doing it a few weeks before filing? I don't want to get into any trouble. One thing though... I am not allowed to use that money - period! It is not mine.

So basically, she needs to go an attorney (and to the bank) and change the accounts to her name (after all, IT IS HER MONEY), leaving me and perhaps my sister (she's financially ok) out of these two accounts (the CD and savings)?

Sorry for all the questions, but I'm so confused.
I want to avoid problems with the Court.
 

Ladynred

Senior Member
I'm afraid its too late to do anything about taking your name off those accounts now. It WOULD look suspicious and could get you in trouble. I would be prepared to show that NONE of the funds was contributed BY YOU and you do not have access to it.

As for 'keeping quiet'.. that isa dangerous and stupid suggestion. Should it come out, the bankruptcy could be dismissed and the filer charged with fraud !!
 

Nena 11

Junior Member
How can I prove that the funds are not mine, and that I have never put money into those accounts?
I agree with you. I've read in some places that transferring money a year before filing - for whatever reason - could look suspicious, even if it's not intentional.
But how to prove that these funds are not mine?
 

louielouii

Junior Member
too many

Indiana I think that there are too many people flooding in to file bankruptsy especially now that the law is changing. how in the world could the trustee look up every detail on everyone of these people it is not possible I think that they are taking you're and you're 'attorny's word.
 

Ladynred

Senior Member
Louie, while that may be true, its just not a good idea to lie and to hide assets. BK fraud is punishable by heavy fines and even jail time at its worst, at the least the filer can be barred from filing BK again for some time. With the current climate I'm hearing more and more about Trustees already getting more aggressive, despite the surge in filings.

Nena, if your mother has statements for the accounts and proof that SHE made all the deposits, then that would likely be enough proof. You may not need it, but its worth it to be prepared to show it.
 

Nena 11

Junior Member
Right. My mom's income is deposited into that account every other week. My sister took out a "loan" from my mom and is putting $500 into that account every month. I don't touch that money at all. My mom did make a check to me using that account for $250, about a month ago. Assuming that I "own" half of what's on the savings account and the CD, my asset would be of $20K. I owe $40K in unsecured debt. Those acconts are in PR, and I am in PA.


I agree with whoever said not to lie. I will mention it to my lawyer. I don't want to lie and end up being fined or else behind bars.

I just hope there is some way to prove that that money is not mine! Or else, I'll end up paying about $20K in my repayment plan. And that divided by 36 months is close to $600.
 

Nena 11

Junior Member
Well, I'm sure they evaluate each and every single case. Of course, that's almost 2M cases a year, but it's the government. I don't even know if I'm allowed to prove that the money isn't mine! I'm sure my lawyer will know if this is possible. If not, then I'm in trouble!
 

Nena 11

Junior Member
Ok, I finally talked to my lawyer. I told him about the savings account and the CD my mom put in our names (mine and my sister's). Basically he said this is considered an "inheritance" because I am not allowed to touch that money (which is true!). Parents usually do this and because I don't have access to this (I can't write checks, don't have an ATM, or overall access), I should be fine and there is no need to list them.

Thanks to all who gave me advice on this.

***Please use this information wisely and if you or someone you know are in a similar situation, talk to your lawyer first. This advice applies to my particular case, but might not apply to yours.***

Thanks all!
 
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