Let me preface this by saying my attorney seems to think things will go just ducky, I have reason to believe they won't. Here goes.... Married, filed individual bankruptcy (ch 7)- husband is disabled, receives disability pension,SS disability + money from a large settlement each month. He was working up until last year, when everything hit the fan. I got behind on bills so we let mine go and just paid things in his name (had to make a choice). Here's the problem - all $ accounts are joint, with my name first. What happens if the trustee asks for checking account statments and he sees thousands of dollars going into these accounts? My attorney says that since my husband has a mental disability and I am his representative payee for Social Security, my name is justified being on the accounts since he isn't allowed control over his own money. I'm terrified they're going to question me on this - I can't pay the money I owe, I'm being sued by 2 companies who won't settle (otherwise I wouldn't be doing ch 7). I have no income of my own, all income comes from my husband. I can't work since I take care of him. I just want to get this behind me so I can move forward. Has anyone had any experiences with this?
Only the attorneys and the judge will be able to answer this one (for your specific case). In abscence of this 'mental disability', in MOST cases (depends on where you live) your debts are his debts and his debts are your debts, regardless of whether or not your name is on his accounts and/or debts, his name is on your accounts and/or debts, both names are on accounts and/or debts, only one filed for BK, yada yada yada. Again, the legal system will answer this one for you.
My situation is somewhat similar- I may have to declare BK7 individually, my husband makes a lot of money and all our accounts are joint. My attorney advised me to open my own checking account but clearly it's not that easy for you. You may want to open an account anyway, just to make sure it's clear that your income (or lack thereof) is separate from your husband's disability. You might also want to consult an attorney not involved in the BK7 (no vested interest) about how to shield your husband's income (putting it in a trust, appointing a trustee temporarily, soliciting a trusted family member to be on his account) Maybe I'm too pessimistic, but I would not be at all sure that the court and creditors won't try to attach his income. My husband and I have actually talked about divorcing just until I get through the proceedings to make sure his assets, accounts and retirement funds (which he already gutted trying to save my house) aren't further damaged. Be careful and good luck. I feel for you. Poochie
Typically, the BK Trustee and the Court will be interested in whether or not you have assets that are sufficient to pay your debts. Obviously you don't. As such, the Court and the Trustee shouldn't[/] be too interested in the funds in your bank accounts. They understand, and they expect, that you'll be able to maintain a living. If they liquidated your sole income, it wouldn't serve the purpose of bankruptcy--a fresh start, with the ability to stay above water.
