Credit Card Debt Bankrupt

What happens to my credit card debt and more specifically my very low interest for life APR if the company goes bankrupt?

It depends on what is happening with the company at time of bankruptcy (merger, takeover, outright fail . etc.). The most likely scenario however is:

New company picks up the debt - and whatever balance is on the cards is now due to them. For instance, company B buys the portfolio from company C - everyone now owes company B.

Likely with low APR cards, and this isn't guaranteed, but a possible scenario - and it may even be spelled out in the small print that goes with the card - likely though company B won't want to keep this card around. If it says in the contract that they can't raise the rate, then they will likely close the account. Any outstanding balance will be able to be paid back under the current terms, but no more spending. Also, as a great favor, they will likely offer you a new card/account - but at worse terms.

2008-11-23 18:46:38 by all_sk8r

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I failed to show up in court and now an attorney is saying Chapter 13 bankruptcy is the only way to go. I don't want a lien put on my rent property. I heard they can even auction it for the debt. Is it too late to make them prove it's my debt to delay this for 30 days? I have 1 week left to answer the post judgement interrogatories.

Why not just pay the debt or make arrangemets for payments to the legal firm handling the court case?

The time for monkeying around with "prove it's mine" are long gone if there is a post judgment. You pretty much gave up the right for any proof when you failed to show up for the court hearing.

2008-02-19 01:43:45 by Need Answer

This is a royal pain in the rump. It happened to me. When they went bankrupt their debts were either sold or transferred to their creditors. You now owe the new owner of the debt. This is not too bad if they contact you. If they don't, as mine didn't, you have to track down who you owe the money too. This can be a pain. I've tracked one of my past debts through 3 owners in 2 months. Every time I found it I got "we just transferred/sold it." and often they won't tell you who they sold it to. It's currently "owned" by yet another bank that closed. Good luck with yours.

2009-01-19 21:06:32 by /.B.O.N.E.S./

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Since most financial companies are having trouble these days, none might want to take over the Debt if lets say, Citi went Bankrupt.

Someone will always buy the same, ust depends on the price.

It is an asset that will be purchased and the new owner will collect.

2008-11-22 09:59:53 by xerxes603

It beomes an asset of the bankruptcy estate. You remain obligated.

2009-03-10 18:47:04 by MICHAEL G