I filed bankruptcy and when I filed my boyfriend had an investment that he cashed in to pay on his house that was about to foreclose. My lawyer said the money would not be used in my bankruptcy bc it was totally his investment and not my money. Well we received a letter that he is being sued by the trustee for the money from investment. Bc my name was on the account as well. Full disclosure of the money in account was made known during my bankruptcy. How can he be sued now? And could they get this money back from mortgage company, which is what was paid with the investment.
I'm assuming, although you don't state, that this is a Chapter 7 case. Your question examplifies a common misunderstanding of the law.
In a Chapter 7 case, the Trustee steps into the shoes of the debtor in bankruptcy and, as of the date the case is filed, becomes the owner of any and all assets of the debtor. If you were on title to a bank account on the date your case was filed, then the Trustee has the sames rights and interest in the money in that account as you do. Any subsequent transfers of those funds without the Trustee's approval (if it occurred after the bankruptcy case was filed) would be problematic, as you have discovered.
Ask yourself this simple question: Could you have withdrawn money from that joint account legally? If so, then so can your Trustee.
That having been said, your boyfriend had rights in those funds as well, so I don't think it's as cut and dried as the Trustee may think. Your boyfriend should hire an experienced bankruptcy attorney to represent him at this point.
Probably the best thing would have been for your boyfriend to withdraw the money prior to you filing your case and that should have been OK, particularly if he can prove that he is the one who had deposited all the money into the account.
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
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