Joint bank accounts may come under more scrutiny in debt chase

Singapore

CREDITORS can now legally seize money held in joint bank accounts under certain circumstances, the High Court ruled in a landmark judgment last month, departing from its previously-held position that joint accounts cannot be garnished as doing so may be unfair to the banks and the other innocent holders of joint accounts.

While lauding the ruling's potential for enhancing equity in cases of bad debt, some lawyers told The Business Times it may not dramatically up the number of applications to garnish joint accounts, due to the high burden of proof required.