QUESTION
Can my late husband's debt affect my personal bank account?
Asked on Jan 26th, 2012 on Bankruptcy - Georgia
More details to this question:
My husband passed away and our home is in foreclosure with liens from his debt, how can this affect my personal bank account? The house is in both names and have already gone into foreclosure, and I have my own bank account. Does that debt get put on me and can they freeze my bank account? Also, someone suggested that I go bankrupt since I have some debt (about $20,000 of my own). Can bankruptcy freeze my bank account?
4 ANSWERS
Criminal Defense Attorney serving Portland, OR
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Jacob D. Braunstein, Attorney at Law
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Bankruptcy does not actually freeze one's bank account. A debtor will still be able to use his or her bank account as normal. However, a debtor's bank account is considered an asset of the bankruptcy estate as of the day of filing. This means the trustee can ask a debtor to turn over any funds held in the account on the day of filing that exceed any applicable exemptions. Certain assets are exempt from the bankruptcy estate either in whole or in part depending on value. You will want to consult with a bankruptcy attorney regarding the specific exemptions.
Answered on Jan 31st, 2012 at 12:40 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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You can file a personal bankruptcy to discharge your debt and simply exempt your bank account.
Answered on Jan 31st, 2012 at 12:23 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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In order to freeze your account, your deposit account would have to be at the same bank that you owe money to, or the bank would have had to have sued you and obtained a judgment against you. You may or may not be liable on your husband's debt depending on the type of debt and whether it was joint or you signed a guaranty. From what you are saying, it sounds like bankruptcy might be a good option for you.
Answered on Jan 31st, 2012 at 11:34 AM
Bankruptcy Attorney serving Atlanta, GA
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Jakob-Barnes Law Firm, LLC
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Since you have $20,000.00 in unsecured debt and your house is in foreclosure, I would highly suggest exploring your option of bankruptcy. Bankruptcy does not freeze your bank account. Bankruptcy discharges you from your personal obligations on debt.
Answered on Jan 31st, 2012 at 11:30 AM