Joint bank account

by Tyler
(Nebraska )

I'm 17 and I live in Nebraska. I opened a bank account and I had to have a jointly owned account with my mom since I am a minor. My mom owes money to General Collection and I was wondering if they could garnish money from my account because her name is on it?

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Dec 26, 2011
Joint bank account
by: Debtcollectionanswers


If you and your Mom have a joint bank account, from the law's perspective you both own the account and the money that is in it. So unfortunately, your money is at risk if your Mother has unpaid debt. However, in order for the money in the account to be garnished, your mother would have to be sued by the collection agency and the court would have to give the agency collection permission to take the money.

There are steps your Mom can take to prevent that from happening however. She could contact the collection agency and try to work out a way to pay the debt over time by making payments she can afford. Or, she could try to negotiate a settlement agreement with the collection agency. When a consumer settles a debt, they pay it off for less than the full amount that they owe on it. If your Mom resolves her debt via either a payment plan or a settlement agreement, she should be sure to get the details of the plan or agreement in writing before she pays the collection agency any money on it.

I don't know the details of your mother's financial situation, but another option she may want to consider if she owes a lot of money that she cannot pay relative to her income is filing for bankruptcy. Depending on the kind of bankruptcy she files, she will be able to wipe out all or most of her debts other than debts like a car loan or a mortgage, and as soon as she files, all collection actions must stop. This link will take your Mom to lots of information about how bankruptcy works, how to file for bankruptcy. Also, if she thinks she may want to file, she can go here for a free consultation with a bankruptcy attorney. Bankruptcy is a complicated process so it's not something she should handle on her own.

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