The holder operates the account
That power does not make all funds the holder’s property.
The beneficiary owns the funds
The beneficiary’s status determines the principal bankruptcy risk.
Tracing is essential
The contract and statements separate beneficiary funds from the holder’s money.
How a nominal account works
Article 860.1 permits an account to be opened to a holder for operations with money belonging to another person, the beneficiary. The agreement or law governs permissible transactions and accounting for multiple beneficiaries.
A common example is a parent or guardian operating an account for a child. The label on a card is not conclusive. The court and financial manager examine the agreement, named beneficiary, source of receipts and actual spending.
Bankruptcy of the account holder
Article 860.5 generally bars suspension, attachment or debiting of nominal-account funds for the holder’s obligations, subject to specified banking exceptions. The reason is that the beneficiary, not the holder, owns the funds.
The account must nevertheless be disclosed. The debtor should provide the agreement and statements. Personal receipts or spending for the holder require separate tracing.
Bankruptcy of the beneficiary
If the debtor is the beneficiary, the rights to the funds may form part of the bankruptcy estate, subject to statutory enforcement exemptions. Attachment or debiting for the beneficiary’s obligations may be authorised by a court and in other cases provided by law or the agreement.
| Debtor | Main question | Evidence |
|---|---|---|
| Account holder | Whether another person owns the funds | Agreement, beneficiary and statements |
| Beneficiary | Whether the right enters the estate | Source and any enforcement exemption |
| Parent as holder | Whether the money truly belongs to the child | Benefit or maintenance records and movements |
| Several beneficiaries | How balances are separated | Bank sub-ledgers or holder records |
Action plan
- Obtain the complete nominal-account agreement.
- Identify the holder and every beneficiary.
- Download statements covering disputed receipts.
- Match each receipt to maintenance, benefit, transaction or transfer records.
- Do not mix the holder’s personal money with beneficiary funds.
- Disclose the account and explain its legal character to the manager.
- If blocked, provide proof of ownership to the bank and manager.
Related guides: protected payments, maintenance and bankruptcy and personal bankruptcy.
Frequently asked questions
Does a child’s nominal account enter the parent’s bankruptcy?
The child’s money does not become the parent’s property merely because the parent holds the account, but ownership and use must be documented.
May the debtor conceal the account?
No. Disclose it and explain who owns the funds.
What if funds are mixed?
Transactions must be reconstructed to separate proven beneficiary funds from the holder’s personal receipts.
May the bank debit fees?
Article 860.5 preserves specified banking and contractual exceptions. The particular debit must be reviewed.
Official sources
Has a nominal account been blocked?
We can review the agreement, beneficiary, source of funds and procedural remedy without guaranteeing an outcome.
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