Expert: Terry Leeders - 8/14/2008

Question
Hello.  My husband and I will be filing chapter 7 bankrupcty in about a month.  He has a CD that is in his name and his grandfather's name.  do we have to disclose that cd as an assest?  If so, will bankrupcty liquify it?  Should he have his grandfather change it to his name only?

Answer
yes, he has 1/2 interest in the CD.  Your state has exemptions to protect these type of assets, in IL it is $4000.  Any liquidation/transfer of asset needs to be disclosed, and the court can 'undue' that, so that would not be adviseable.  If the amount is too great, the option of liquidating and spending his portion down on necessities usually is the other option.