What happens if my credit card company files for bankruptcy and I owe them money?
Credit Card
kingtiger222 asked:
WaMu might be next in line to go under. I owe them $9,000 on my credit card, which I have never been late on and always pay way more than the minimum. What happens to my bill and can they demand all that money in one payment?
Gertrude
WaMu might be next in line to go under. I owe them $9,000 on my credit card, which I have never been late on and always pay way more than the minimum. What happens to my bill and can they demand all that money in one payment?
Gertrude
December 29th, 2008 at 7:25 pm
The account will probably be bundled along with other account receivables (they are considered assets) and sold to another bank or card issuer. You should get a notice about the change and other than that, you will probably see no difference. Just remember, if this happens, the new card company may institute new interest rates, etc. Make sure you read the info they send. They should provide you with the option to pay off the current balance at the old rate as long as you don’t use the card - use of card usually means acceptance of the new terms. Of course, if the new terms are favorable to you, use the card
January 1st, 2009 at 8:28 pm
It will probably be bought by another company in which it will stay the same. If they call it in now, then you file bankruptcy and give them the same they gave you.
January 3rd, 2009 at 6:12 pm
yes. you still owe the money if the bank is seized, etc. you may just be paying the money to the new owner, even if it may be the FDIC, and you still can get in deep ca ca if you don’t pay.
January 4th, 2009 at 8:52 am
They can’t demand it in one payment and businesses don’t go under from filing bankruptcy, they’ll be around for years.
January 4th, 2009 at 4:04 pm
You still owe them, even if they are in bankruptcy.
January 4th, 2009 at 6:08 pm
Another credit card company will take over thier loans. The terms of the loan may change, like the interest rate and the minimum payment. You can always transfer it to another credit card company. If you are making timely payments, I don’t see why another company would not take the loan.
January 5th, 2009 at 1:19 pm
The account (if you carry a balance) will be sold as a receivable. However, it will convert to a closed-end loan. Thus, no more using the card. Reason being the first 6 digits on the card are the BIN, Bank Identification Number. Visa/MC’s systems will not function properly if one bank is managing cards issued with multiple BIN’s. Even worse, the system would melt down if one BIN was used by multiple banks. The entire routing of transaction information to move money needs this one-to-one relationship.