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Auto Lease Repossession
Question: I have a custodial account for my children in which I deposit monies on a regular basis for their college education. Can my creditors seize those monies from my children’s accounts?
Answer: A custodial account set up under the applicable state and federal law followed by your banker is protected from the claims of your creditors. Technically, even though you are depositing the funds and administering the account as the custodian, the account and its monies are not your property, and therefore, are not subject to the claims of your creditors. Remember, also, that your creditors cannot just seize your accounts. They must file and properly serve you with a lawsuit and obtain a judgment against you before attempting to seize any of your property. The only creditors who may seize property without first bringing suit are those that are secured by certain property. The auto leasing or finance company can repossess your car or truck without first bringing suit and obtaining a judgment. When you bought or leased the car or truck, you agreed to this form of remedy.
This entry was posted on Friday, March 18th, 2005 at 9:49 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.