"My Name Is On The Account" Does Not Always Mean Account M...

Many bankruptcy debtor misunderstand what it means to have their name on a family member's bank account.  I usually ask prospective debtors how much cash they have in their bank account. Often the client tells me that they have almost no money in their primary, household account but that “there name is on an account with” their (parent, spouse, child, etc.). Some bankruptcy debtors who say their “name is on an account” mean that a third party, usually a family member, has authorized the debtor to sign checks on the family member’s account for convenience purposes. Other debtors mean that a family member added the debtor to the account title so they could more easily inherit the money after the family member’s death.

For bankruptcy purposes, as a general proposition, money in a bank account is part of your bankruptcy estate if the account balance represents your money, that is, money you deposited or are authorized to use for your own purposes. If some relative made you an authorized signor of their account, containing their money, to be used for their benefit, the account is not part of your bankruptcy estate. Similarly, if you are on the title of a bank account for convenience or inheritance purposes but none of the money in the account is your money or to be used for your benefit, then the account should not be considered part of your bankruptcy estate.

Make sure you explain to your bankruptcy attorney whether money in an account with your name on title or on the signature card is actually your own money or someone else's money.