Joint Banking Accounts and Bankruptcy

Bankruptcy usually affects more than just the person filing for bankruptcy. It can also affect their friends and family. A spouse may be especially affected because of any joint assets that they and the person filing for bankruptcy may have. Thus, assets such as a joint banking account and the money it contains, may be a major consideration when deciding whether or not to declare bankruptcy.

At Eric N. Klein & Associates, P.A., our West Palm Beach bankruptcy attorneys have a wealth of knowledge and experience handling a variety of bankruptcy cases. Therefore, our legal team is prepared to answer any questions you may have and support you in any way when you contact us by calling 561-353-2800.

What Happens?

Bankruptcy is a unique process and varies for every person. This means that a joint bank account that you hold with a spouse can be affected in various ways. Almost always about half of the money in the account is considered the property of the non-filing spouse and cannot be touched. This is not the case if the spouse not filing for bankruptcy did not contribute any of the money to the account, under which circumstances the money may all be used to pay off debts.

The half of the money that belongs to the person filing for bankruptcy may or may not be used to pay off debts, depending on whether or not it can be qualified as exempt. The person filing for bankruptcy typically would have to prove that the money in the account would go towards expenses necessary to living, such as food and housing.

Contact Us

No matter what your bankruptcy needs are, whether you have further questions about joint banking accounts or other concerns about filing for bankruptcy, it may be in your best interest to contact the qualified West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., at 561-353-2800.