Q: I have a loan against a CD and I was wondering if I claim bankruptcy will they take the CD? South Carolina
A:
This sounds like it's a secured claim, which does not get discharged in bankruptcy like unsecured debts (like credit cards, etc). There are various ways to deal with secured debts - one of which is surrendering the property/asset. You can also just continue paying on that loan (or reaffirm the debt).
Information provided for informational purposes only and should not be taken as legal advice.
A:
The lender will offset the amount owed against the CD. The reason the bank accepted the CD was so it could ensure that it would be repaid at least the amount of the CD.
It is possible that the assignment was not done properly, however, that would be a long shot and should be reviewed by an attorney.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
