bankruptcy and minor child’s bank account

Will filing bankruptcy affect a bank account my minor child has?

One Response to “bankruptcy and minor child’s bank account”

Barton Goth GCO Bankruptcy Trustees said...

This is going to depend on how this account has been set up and where the funds have come from. If the account is entirely in your child’s name then you shouldn’t have any issues (assuming you haven’t deposited large sums of money in this account prior to filing for bankruptcy).

If the account is in joint names and you can clearly demonstrate that the money in the account came from the child, then again this shouldn’t be an issue.

The problem will exist if you have been simply setting money aside for the childs education, the money has simply been coming off your cheque and really doesn’t relate to the childs contributions at all. In this type of instance you would likely have to turn that money over to the trustee for the general benefit of creditors.

This is a good issue to discuss directly with local trustee as it will give you the ability to explain the full details associated with this account and make it easier to provide some certainty.