i live in florida and my sister lives in durham nc. can they freeze my sisters accounts even if i dont use them
If I were representing you in a Chapter 7 bankruptcy, I would recommend that you have your sister remove your name from her bank accounts. You should then disclose in your Statement of Financial Affairs that you were on her accounts and were removed. Most likely, as long as your sister could prove that all of the money that was deposited into her account was hers, and that you had never deposited any money in those accounts, the bankruptcy trustee probably would not be able to get that money. However, why keep your name on her accounts and even run the risk?
If you file bankruptcy you have to list all accounts. The funds are at risk. There is an argument as to what is called bare legal title or constructive trust, meaning that the funds are not really yours. You really should consult an attorney on this matter. If you take your name off the account, this could have its own risks, and you would need to disclose the closed account(closed as to you).
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I agree with Mr. Solomon, the bare naked title argument is basically that you name is on the legal title to the account, but you do not have an equitable interest in the funds. You would need to prove that your sister is the only person who deposited funds into this account and that you did not use or access these funds.
This should be throughly discussed with an attorney. Please let us know if these answers were helpful by hitting the helpful button. Good luck.
How much money does sis usually keep in her account? You might be looking for a problem that doesn't exist if, like many people, sis spends her money and is broke by payday, or if there is an exemption available to protect this money as if it were yours. Hope this perspective helps.
Your answer depends upon North Carolina law since that is where the bank accounts are located. In my state, if you and your sister can establish that you are only on the accounts to assist your sister in the event that she needs assistance in paying her bills, etc upon her have a medical problem, then you can establish that you have no interest in the money. However, if you have taken money out of the accounts one time to pay your for any of your debts or purchase something for yourself, you have lost that right.
I added some other tags. Hopefully, an attorney from North Carolina will see your question and respond.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
I agree with Mr. Solomon but would want to know exactly how your name appears on your sister's accounts. If you are merely the beneficiary of the account in the event of death then you have no ownership interest in the account. If you are a joint owner on the account then you would "technically" be an owner of the account. I would want to know what stage of the bankruptcy you are in. If you have already filed and did not disclose the accounts, I would recommend amending the schedules to add the accounts. You would also need to determine whether you had the right to claim some sort of exemption on the account (as an alternate basis) and claim it if the time to claim exemptions has not passed . If you have not filed the accounts should be listed as property and the bare legal title issue disclosed, and any appropriate exemptions claimed (alternate). If you have filed you would need to determine whether or not the trustee has abandoned the accounts. Lastly, and possibly rendering all issues moot (except nondisclosure) how much was in the account at the time of filing? If the amount was negligible it is possible the trustee will not fight it as there is nothing there to fight over.
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