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Withdrawing cash by a partner form joint bank account

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daniel845

Member
My apologies for not responding as I was sick.

I have a joint in a bank account with my friend. We are just friends, both are male, and we have our own families (separate wives and children). There is OR between our names in the account and anyone of us can withdraw and anyone can deposit. This is not business bank account.



Many times, he (my friend) withdrew cash form that joint account, by writing a check made out to himself. He is facing civil lawsuit and he almost lost the case. If he becomes judgment debtor then:



(i). whether I will be held in any manner responsible for fraudulent transfer claims (by the judgment creditor) for the cash my friend withdrew by writing a check made out to himself from that joint account?



(ii). the money my friend received from the joint account (by writing a check made out to himself), will be treated (by the court if the creditor files fraudulent transfer claim) as if he (my friend) alone received that cash or we both (I and him) received it together?
 


adjusterjack

Senior Member
I have a joint in a bank account with my friend. We are just friends, both are male, and we have our own families (separate wives and children). There is OR between our names in the account and anyone of us can withdraw and anyone can deposit. This is not business bank account.
Why did you make such a foolish arrangement? It was guaranteed to be problematic at some point.

(i). whether I will be held in any manner responsible for fraudulent transfer claims (by the judgment creditor) for the cash my friend withdrew by writing a check made out to himself from that joint account?
Highly unlikely. You're not a defendant in the lawsuit, right?

(ii). the money my friend received from the joint account (by writing a check made out to himself), will be treated (by the court if the creditor files fraudulent transfer claim) as if he (my friend) alone received that cash or we both (I and him) received it together?
Nobody can guess what any judge will do under any given circumstances. A lot depends on what the plaintiff can prove.

You are worried about things that are unlikely to happen when you should be a lot worried about YOUR money evaporating if there is a bank account levy.

Have you removed your share of the money from the account yet?

If not, why not?

It's a no-brainer.
 

daniel845

Member
Now there is only pennies left over in that joint account. I have no concern, or complaint, against my friend for withdrawing cash by writing a check made out to himself (he helped me a lot in the long past when I was in trouble therefore I am always thankful to him).
Now my friend gave me a notarized affidavit stating that I have not received any money he withdrew by writing a check made out to himself and he said it will protect me in case the potential creditor question my involvement in the money my friend withdrew by writing a check made out to himself.

Edit: I have no present creditors and am not expecting any creditors in the future.
 
Last edited:

doucar

Junior Member
I could see a case where your creditors would have questions about him withdrawing my from your joint account, but not his creditors asking why he would draw money out of his joint account with you.
 

LdiJ

Senior Member
My apologies for not responding as I was sick.

I have a joint in a bank account with my friend. We are just friends, both are male, and we have our own families (separate wives and children). There is OR between our names in the account and anyone of us can withdraw and anyone can deposit. This is not business bank account.



Many times, he (my friend) withdrew cash form that joint account, by writing a check made out to himself. He is facing civil lawsuit and he almost lost the case. If he becomes judgment debtor then:



(i). whether I will be held in any manner responsible for fraudulent transfer claims (by the judgment creditor) for the cash my friend withdrew by writing a check made out to himself from that joint account?
No, you would not be held responsible for any fraudulent transfer claims. You were not the person sued nor did you receive any money from your friend.



(ii). the money my friend received from the joint account (by writing a check made out to himself), will be treated (by the court if the creditor files fraudulent transfer claim) as if he (my friend) alone received that cash or we both (I and him) received it together?
You didn't receive any cash and no one can claim that you did. He wrote a check to himself. He did not write a check to you. It isn't even a fraudulent transfer for him to spend the money in the account. It would only be a fraudulent transfer if he hid the money by giving it to someone else to hold.

You either need to relax about this whole thing, or you need to consult with a local attorney for reassurance that you are not part of the lawsuit against him.
 

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