I have a delinquent account on a business that has been closed for a year. My name is listed on my mom's CD with the same bank. Can they cash out her CD to pay off my credit line?
If the debt was in your name and you are also an owner on the CD, yes. The right to setoff is commonly in debt and deposit agreements.
If you still owe the bank money, rather than live through this fear, why not make payment arrangements with them. When they have such a plan and you adhere to it, they won't be looking for setoff accounts.
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If the debt was in your name and you are also an owner on the CD, yes. The right to setoff is commonly in debt and 