I am one of the owners on a joint CD. The other owner has rights of survivorship and is using this CD as loan collateral. If the joint owner dies after defaulting on his loan, who has superior rights to the CD: the creditor or myself?
The state laws governing ownership of the deposit account will goven the answer to this question. In most cases, if the creditor has a valid lien on the account, the creditor will prevail. If there's a question, a court may have to intervene and determine ownership of the funds.
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The state laws governing ownership of the deposit account will goven the answer to this question. In most cases, if the creditor has a valid lien on the account, the creditor will prevail. If there's a question, a court may have to intervene and determine ownership of the funds.
