Hello,

We're considering filing bankruptcy over $30,000 in unsecured
debts. I just found out in talking to my husband that his mother
has purchased certificates of deposit in both her name and his name.

This isn't our money, but I guess she's planning on leaving it to
us when she dies, bypassing her will.

What are the implications of these CDs if we do file bankruptcy?
He told her tonight to remove his name from them, but if we file
for bankruptcy, we'll probably do so in the next week or so.

Will the court understand that this isn't our money? Suggestions?
Advice?

Thanks

If his name is on the cd, and he would have a right to cash access the
funds, I expect that the asset is property of the bankruptcy estate. If
he and mommy remove his name from the cd's, the chapter 7 Trustee would
have the power to reverse the change and pull the $$$ back into the
estate for distribution to creditors. To check the powers with regard
to such an effort you should refer to your state's fraudlent conveyance
statute.

A chapter 13 would avoid these problems, but it would require you to pay
something back to your creditors.

Anon in Indiana wrote: Hello, We're considering filing bankruptcy over $30,000 in unsecured debts. I just found out in talking to my husband that his mother has purchased certificates of deposit in both her name and his name. This isn't our money, but I guess she's planning on leaving it to us when she dies, bypassing her will. What are the implications of these CDs if we do file bankruptcy? He told her tonight to remove his name from them, but if we file for bankruptcy, we'll probably do so in the next week or so. Will the court understand that this isn't our money? Suggestions? Advice? Thanks

I have argued in such cases that your husband's name has been added simply
as an accommodation, and that the money really isn't his. Here in Maryland,
it has worked; I can't speak for other states.

Discuss the matter with your attorney *before* doing anything.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************


"Anon in Indiana" <not@available.com> wrote in message
news:br8k5n$jed0$1@ID-210502.news.uni-berlin.de... Hello, We're considering filing bankruptcy over $30,000 in unsecured debts. I just found out in talking to my husband that his mother has purchased certificates of deposit in both her name and his name. This isn't our money, but I guess she's planning on leaving it to us when she dies, bypassing her will. What are the implications of these CDs if we do file bankruptcy? He told her tonight to remove his name from them, but if we file for bankruptcy, we'll probably do so in the next week or so. Will the court understand that this isn't our money? Suggestions? Advice? Thanks

Brett Weiss wrote: I have argued in such cases that your husband's name has been added simply as an accommodation, and that the money really isn't his. Here in Maryland, it has worked; I can't speak for other states. Discuss the matter with your attorney *before* doing anything.

Thanks Brett. From reading the posts here, I was really hoping
you would respond. I'm on my way to the attorney in just a few
minutes.