I had a business that failed. I have a personal stocks account that was put up as collateral. The business and building have been sold at auction. The account still has a substantial amount of money in it. Does the bank still own the money, and I get stuck with paying taxes on the capital gains?
If the account was pledged as collateral for the loan and the loan balance has not yet been satisfied (by the sale of the business and building), the bank still controls the account. If the bank liquidates any of your portfolio, you will be responsible for any tax effect of the sale. While you specifically mentioned capital gains, there may also be losses from the sales that you may be able to use to your advantage. If the loan balance and related costs have been satisfied, you should ask the bank for a release of the investment account so that you can assume control once again.
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If the account was pledged as collateral for the 