joint bank account.jpg

Do you share a bank account with another person? Has a creditor levied upon that joint account to satisfy a judgment that was entered against one of you? Are you afraid that your money in that joint account will go towards paying off the other person’s debt? If so, a recent Appellate Division ruling will come as good news.

On January 2, 2018, the New Jersey Appellate Division in Banc of America Leasing and Capital, LLC v. Fletcher-Thompson Inc., et al. ruled that a creditor may not obtain turnover of funds held in a joint account unless it proves that the funds it is seeking to have turned over belong to the debtor. In this case, the creditor obtained a judgment against the debtor, but not his wife. However, the funds held in the joint account belonged exclusively to the debtor’s wife. The Appellate Division found that the creditor failed to prove that the funds in the joint account were the debtor’s property. The Appellate Division also noted that certain funds held in a joint account, such as pension-related payments, may be exempt from levies. This Appellate Division ruling is binding upon all New Jersey trial level courts.

This case makes clear that when a joint account consists of funds from more than one accountholder, a credit can only levy those funds that can be traced to the person who owes the debt.


If your account is being levied upon, it is important to contact us as soon as possible. At Levitt & Slafkes, P.C., we have more than 30 years of experience helping people who need debt relief. We want to do the same for you. Contact our office now so we can review your case and help you move forward in a way that best suits your needs. We are here to help!

Call us at (973) 323-2953, or contact us online to schedule a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.