Can my Bank take money out of my account to pay debt?

February 6th, 2014 by Questions

I am considering filing for a CP. I have joint accounts with my mother as well as my own at the same bank. I am not behind in monthly payments. The money that goes in moms cheq acct is her pension and Riff and her other account is a US savings account that has not changed in dollar amount in 3 years except for little interest. I only pay her bills online, I never use her money to pay debt. If i am not behind in payments and I do file, does the bank not have a legal obligation “not” to take any monies out of any of our accounts
Btw, I also have power of attorney.

Posted from: Ontario

Questions

One Response to “Can my Bank take money out of my account to pay debt?”



February 06, 2014 at 4:33 am, A licensed trustee on behalf of Bankruptcy Canada said:

The bank has the right of set-off for your accounts. This means if you owe the bank money for a loan, credit card or some other debt, and you have money in a chequing or savings account the bank can take the money and apply it to the debt. They cannot do this with joint accounts, but “accidents” happen. Your best course of action is to change banks – I realize that is a huge inconvenience, but it eliminates the chance of any “accidents”. Alternatively, change your name on the account to read “in trust for your mother”.

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