My dad is in big trouble and his bank accounts are in the negatives. How can I fix my situation?

General Discussions Forum
1

I live in Texas and I’m using a throwaway because these details could identify me.

My dad is 65 and has a history of making poor financial choices and getting sued by debt collectors. Today, I got a notification from PNC bank saying my stagnant account is at -$213,685. I thought it was fraud and called the bank, but they told me it was because of a legal hold.

I knew my dad was being sued and didn’t show up for his court date, so a default judgment was made against him and garnishments started.

The problem is, I have a joint bank account with him. We opened it when I was a minor, and I just never closed it. Now I’m in my 30s and married. This was my mistake. I made my dad meet me at the bank to remove my name, but they wouldn’t let us do that while it was negative. They did give my dad the contact info for the lawyer, Mike, who set up the garnishments. My brother also has a joint account with my dad since they ran a business together. All in all, four of my dad’s accounts were garnished for the same amount.

I felt like my life was falling apart. My dad called both his and Mike’s lawyers. Now, my dad lied to me about this whole situation. I know he was served and has an attorney, but he acted shocked like he didn’t know.

He told me Mike said he would reverse the garnishments on the joint accounts. My dad claimed he filled Mike in on details he didn’t have, but it all feels suspicious and I don’t trust that the garnishments will be reversed.

Between feeling angry, scared, and helpless, I’m figuring out what my brother and I can do now. If the garnishments aren’t reversed, what then? If they are reversed, will this hurt my credit? Will I have a garnishment record? Should I hire a lawyer for myself? I can’t really afford it, but I can’t let my dad ruin my life. I need advice on how my brother and I can protect ourselves.

Edit:
Additional Info
There was only $50 in the account. I don’t use it for anything and don’t care about getting that money back.

Additional question: Will I owe the bank $212,000? They’ll likely start charging fees soon. Am I responsible for these fees? Some say it’s not my debt, but I can’t ignore a negative balance like this, right?

2

How much money was actually yours?

If you can show that the money was yours from paychecks, you could probably get the garnishment reversed. It might involve a lawyer, depending on the laws there.

Just so you know, the bank sees you and your dad as having equal rights to the money in the account, but that doesn’t change whose money it actually is.

3

@Xander
Only $50 was in the account. I’m not interested in that money back. My focus is on legally separating myself from this issue. The bank says I owe them over $200,000.

4

Koa said:
@Xander
Only $50 was in the account. I’m not interested in that money back. My focus is on legally separating myself from this issue. The bank says I owe them over $200,000.

If you’ve only lost $50, you have the option to walk away. The garnishment isn’t in your name and shouldn’t affect your credit. It’s your dad’s credit that’s impacted. Just double-check that your name isn’t on the garnishment paperwork.

If you prove that the money is yours, they’ll have to return it to you, though it might require effort. Close all your other accounts at PNC and open new ones elsewhere. Just remember: don’t open joint accounts unless you fully trust the other person.

You might also consider confirming with Mike the lawyer what he told your dad to see if he’s being truthful. But honestly, if you’re only down $50, take it as a win and move on. If your brother lost more money, he needs a lawyer fast.

5

@Rye
I absolutely don’t care about the $50. I thought I owed the bank $260,000 because of the negative account. They say they’re going to start charging fees for being overdrawn. Am I liable for that?

I’ll consult with an attorney to make sure my credit doesn’t take a hit. I’m confident I’m not on any of the legal documents. Mike the lawyer seemed unaware that the accounts were joint, so hopefully that’s true.

6

@Koa
So, they overdrew your account?

7

Xander said:
@Koa
So, they overdrew your account?

Yes. The account had $50 and now it’s at -$212,685.

8

Koa said:

Xander said:
@Koa
So, they overdrew your account?

Yes. The account had $50 and now it’s at -$212,685.

You need to speak to the bank. You don’t have to pay $212,000. Talk to someone higher up. You’re not responsible for that amount; the bank wouldn’t just pay the plaintiff’s attorney $200,000 hoping to collect from you later. Don’t settle for the first customer service rep; go in and speak to an actual banker.

Also, make sure to stop any direct deposits going into that account, or they might just be absorbed into this mess. It’s best to open an account at a different bank altogether.

9

@Xander
Thanks for the help. Just to clarify, I bank elsewhere so my other accounts are fine. I don’t use this account at all. It had just sat with $50, and I went into the bank today to sort this out with my dad. The guy helping us called around but said we can’t remove anyone from a joint account that’s negative.

But I’m still confused. If it shows as negative, does it mean money is just missing? Or is it simply on hold?

10

@Koa
It’s a hold. Like I mentioned, the bank won’t give out $200,000 from your account. They might let your account go negative by a small amount, but certainly not by a huge amount.

11

Xander said:
@Koa
It’s a hold. Like I mentioned, the bank won’t give out $200,000 from your account. They might let your account go negative by a small amount, but certainly not by a huge amount.

That’s good to hear. I appreciate the clarification. Thanks for your input.

12

@Koa
This comment is empty, admin should fix

13

@Koa
Take a breath; you don’t owe the bank over $200,000. A bank will only hold the amount of the garnishment, which is why you see that negative amount across the accounts that include your dad’s name.

14

Koa said:
@Xander
Only $50 was in the account. I’m not interested in that money back. My focus is on legally separating myself from this issue. The bank says I owe them over $200,000.

No, your dad owes that money. They can’t take more than what’s in your account unless you share funds with him. Your personal accounts can’t be touched.

15

Koa said:
@Xander
Only $50 was in the account. I’m not interested in that money back. My focus is on legally separating myself from this issue. The bank says I owe them over $200,000.

You should go to the bank and speak with someone who has authority. Cut all ties with the debt and your father.

16

Koa said:
@Xander
Only $50 was in the account. I’m not interested in that money back. My focus is on legally separating myself from this issue. The bank says I owe them over $200,000.

[deleted]

17

@Davi
You’re only down $50, not $260,000. You don’t need a bankruptcy lawyer; this isn’t your debt.

18

@Davi
Thanks, I’ll look for a consultation with one ASAP.

19

I don’t get it. A creditor can’t take money that isn’t there and put the account into the negatives.

If you had the account since you were a minor, it might be a UGMA or UTMA account. Those can’t have money garnished from them.

20

@Drue
They didn’t take any money. The bank put a hold on the account because they need to comply with the legal garnishment processes. It’s part of what they have to do when they see that your dad’s name is associated with those accounts.

This likely isn’t classified as a UTMA account anymore. It was probably just a regular account set up when you were a minor, where a parent needed to be co-signer since minors can’t open accounts on their own.

It happens all the time.