Creditor Not Entitled to Funds Belonging to Joint Owner
But Account Owners
Prove Who Contributed How Much
Not long after I posted
"Collection Agency Tries to Take 71
Woman's Bank Accounts to
Pay her Son's Debt," a gentleman came to see me who
had just had a
judgment entered against him for a business debt, and the
taking all of the money out of two joint bank accounts he
held with his
All of the money in both accounts had come from his wife's
because he had been disabled for some time. He asked
the creditor could take his wife's money to pay his business
debt. I said "no."
We asked the district court to rule that the creditor could
the wife's money to pay the husband's debt. We lost.
We appealed to the Minnesota Court of Appeals. We
Still believing that Minnesota law should have prevented
happening, we asked the Minnesota Supreme Court to take the
rule on the question of whether a creditor can take money
from a joint
account that was contributed by someone other than the
Warning: this case does not mean that nobody can ever
in a joint account because of a debt owed by a joint owner.
case sheds more light on what a creditor can and
do when dealing with a joint account where one or more of
does not owe the debt being collected:
can serve garnishment papers for a joint account even
when not all of
the owners owe the debt;
the account owners to prove who contributed what amounts
still a bad idea to add your children as owners of your
initially presumed to own all of the money in the joint
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