If I file bankruptcy can they take from my child’s bank account?

September 15th, 2014 by Questions

I have set up bank accounts for my under age children and I go bankrupt can they get the children’s money or is it secure thanks

Posted from: Ontario

Questions

One Response to “If I file bankruptcy can they take from my child’s bank account?”


September 15, 2014 at 2:11 pm, Doug Stuive, CA | Trustee | CIRP said:

In general, bankruptcy is not meant to be punitive so there are several stipulations in place that determine when an asset is seizable by your bankruptcy trustee. In general if your child’s account is set up in the name of the child and is denoted as a trust account then this account will not form part of your bankruptcy estate. If the account is in your name and held jointly with your child then the funds may be seizable by the trustee for your creditors.

Before this can be determined you will need to sit down with a trustee and discuss the account in more detail. There is information required before a trustee can determine whether the funds need to be surrendered. Who contributes the funds into this account? Do you make regular contributions from your own income? Do others make deposits into this account? How old are your children and do they make their own deposits into the account? Depending on the situation the trustee may determine that the funds in your children’s bank accounts should not form part of your bankruptcy.

The only way to be sure is to have a detailed and specific conversation with your trustee before filing for bankruptcy.

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