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How are co-owned savings bonds treated in Chapter 7?

Los Angeles, CA |

I have been purchasing series EE savings bonds registered to me "or" my minor son. The value of the bonds is approximately $20,000, and I only have $10,000 of remaining exemption available. If I file Chapter 7 will the trustee sell the none exempt portion of the bonds even though my son is a co-owner?

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Attorney answers 5


I believe that since your son is a minor and is an "or" owner, he is not a co-owner in the sense that he would be entitled to half of any proceeds ... I believe the Trustee will want approximately $10,000 from you.


Chapter 7 trustees generally require the petitioner e to liquidate certain assets, such as your savings bonds, and pay creditors with the funds. It is pretty open and shut. If you are an owner with your minor son, these bonds are apart of your estate and subject to the liquidation.

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Your savings bonds should be listed on Schedule B, item 15 as a government or corporate bonds. I am sure the trustee would take cash from you if you wish to retain the bonds. An experienced bankruptcy attorney may be able to come up with a strategy to help you get the maximum value of exemptions available to you. Hope this perspective helps!


You need to speak with a local (experienced) bankruptcy attorney. There may be ways to allocate your exemptions more efficiently. Right now, the law is unclear as to what attorneys may or may not say in this regard. Therefore, you'll get more indepth advice by visiting an attorney "in person."

I personally think it's a great mistake for anyone with non-exempt property to file a bankruptcy. If you have more questions, feel free to give me a call.

Good luck!

Rob Taylor


List the asset on Schedule B then list that you have a 1/2 interest in the asset and expemt your interest if you can.