Q: My sister is declaring personal bankruptcy but we share a savings account. Is our money at risk of going to her debtors?
This is in Texas. We are both named on a savings account that holds life insurance money from when our mother died. We are holding the money for our father for use should he get ill, have an emergency, or to pay for his funeral expenses. The money in this account is not for either my sister or my personal use. How do I protect this money from going to her debtors? Given that my name is also on the bank account, can her debtors legally take money that is in my name? What can I do to ensure that the funds are not affected by her personal financial circumstance?
A: Unless your sister is able to exempt these funds in her bankruptcy they may very well be at risk. I strongly suggest she and you speak with the attorney regarding this.
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