BK...It can be confusing!

[apie1]

What is the name of your state? IL

My cousin has filed for bankruptcy under the old law and is just awaiting for her 341 meeting. Many questions I have asked have been answered here, hopefully you guys can help me out on this one... My cousin was on her mom's checking account in case something happen to her mom. Her mom voluntary took her off the checking account. She did this before she filed for bankruptcy. My cousin was a little concerned but the lawyer said don't worry about it, it is not a problem. Is this true? I do not see a problem myself with it considering her mom did it on her own free will but I though I would just ask. Thanks for any input you might have.

 

[bigun]

Since her purpose was for convenience or, estate planning, I doubt there'll be a problem. Worse case, Mom just proves she contributed all of the funds for the account. Likely won't come up.

 

[seniorjudge]

Since her purpose was for convenience or, estate planning, I doubt there'll be a problem. Worse case, Mom just proves she contributed all of the funds for the account. Likely won't come up.

Unless you have an overactive trustee.

 

[apie1]

So basically if she had no money going into her mom's account nor has she used it, it wouldn't matter, right? The only time she has used it is to write a check for her mom for her mom's mortgage. It's the year 2005 and her mom to this date can't even write her own check... Her lawyer said do not even worry about it...

 

[Ladynred]

Rather than putting your cousin on her accounts, what her mother SHOULD do is create a durable power of attorney so that your cousin would be able to access an manage the account in the event her mother becomes unable to or passes away.

 

[apie1]

thanks ladynred, i will pass that on to her. Does the lawyer seem right in this case though? I just do not want the trustee to think that she is hiding something, it was just for what if something was to happen her mom...that's all. If that comes up, how does she go about that? If the trustee were to see her mom's account, my cousin has not contributed anything to her account, it is all her mom's money...she has serious health problems and I don't want her stressing out too much over this...im just a concerned cousin, that's all

 

[Ladynred]

Yes, the lawyer is right. If, by some chance, the Trustee questions it, your cousin and her mother would have to produce proof that your cousin never contributed to the bank account and that her mother put her on it for so your cousin could act on her behalf.

 

[apie1]

thanks...one last, final question. The initial application she had filled out that the lawyer gave her, she only put her own bank account on the application, not her mom's since her mom voluntarly took her off her account prior to filing. Again, lawyer said it did not matter, your mom took you off on her own free will. I am assuming he is correct that she did not have to put that on the application???

 

[Ladynred]

Listen to what the lawyer is saying - he knows what he's doing and he knows the Trustees.

 

[apie1]

Thanks for your response! She acutally ended up having her 341 meeting today and was only asked 5 questions. Did not even ask her about any bank accounts at all. No creditors showed up. At the end the trustee told her her case was a no asset case. Pretty much I am guessing she is in the clear?

 

[Ladynred]

More or less, yes. Now she waits out the 60 days creditors have to file objections, which is unlikely. After that she gets her discharge.

 

[apie1]

Thanks ladynred...One last question and I will leave you alone. (this is just for my information) Could the creditors have objected to the case as soon as they recieved there notice of her filing for bankruptcy? Then I could understand what you mean by the creditors unlikely to object...