If a credit card company went under will anyone have to pay back the debt?
July 14, 2010 
5 Comments
g r asked:
lets say a credit card company filed for bankruptcy or some other serious problem where they went under. Will borrowers or the credit card holders have to pay back the current debt on their credit cards? because if they go under, their business is technically closed from obligations and will the borrowers not have to pay back?
lets say a credit card company filed for bankruptcy or some other serious problem where they went under. Will borrowers or the credit card holders have to pay back the current debt on their credit cards? because if they go under, their business is technically closed from obligations and will the borrowers not have to pay back?
Actually, yes you will. If the company goes into bankruptcy, all the debts owed the company are looked upon as uncollected assets which may or may not be aggressively pursued by the court. The debts may also be picked up by another company (through sale of company assets to a third party). Don't think that just because your credit card company has ceased to actively collect from you that the debt is invalid. The next party you might be hearing from is an attorney for the company or court, or a collection agency entrusted to recoup the loss.
i'm not so sure about that. usually, there's always another comp who buys up old debt. no 1's gonna let u off the hook that EZ. no 1 in their right mind's gonna waive pmt, they want the $$$ they loaned u. let's say u have a limited amt of $$$. U really can't spare a dime. would u loan $$$ 2 a friend/relative & not want it back?
Peachy answered your question correctly.
Your legal obligation does not extinguish if the company goes bankrupt. The accounts receivable of the bankrupt company will be sold to another company who will then have the right to collect on behalf of the bankrupt company.
You will have to look for a more creative scenario to be relieved from your debts.
You still owe the debt. It is an asset to the lender. Their business is NOT "technically closed from obligations."
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