Bill to shield non‑debtor funds in joint accounts draws sharp debate

Susan Williams, a Connecticut consumer bankruptcy lawyer, told the Banking Committee that Connecticut’s handling of joint accounts forces judges and debtors into unfair outcomes and prevents some people from filing bankruptcy. “This is a very harsh and unjust result,” Williams said, arguing the state should adopt a mechanism — such as a rebuttable presumption — to let courts determine whether funds in a joint account belong to the debtor or a non‑debtor co‑owner.

Supporters including Neil Crane, another longtime consumer bankruptcy attorney, gave concrete examples lawmakers said illustrate the problem. Crane described a client whose mother’s $27,000 insurance payout was on a joint account and was taken by the debtor’s creditors after a bankruptcy filing. “If you have money in a joint bank account or a bank account with someone else and that money…