85

No, your debt is an asset. In bankruptcy assets might be sold off (there are different flavors of bankruptcy and they don't all involve complete asset liquidation). Your debt would either remain with them or be sold to another company.


17

Absolutely not. Herstatt Bank went bankrupt in 1974. It took them about 20 years to collect all outstanding debt (bank going bankrupt when you have a 20 year loan means you still have 20 years to pay it back), with the result that the bank fulfilled 97% of its financial obligations, but it took twenty years. Statute of limitations doesn’t matter. If you take ...


10

The bank MUST sell your debt to someone else. It must because it is obliged to sell off its assets (your note) to satisfy its creditors. The bank is not free to just leave your debt lying around in its inventory, going "la la la, I think I'll just leave these debts sit here unattended". The landlord, the county tax assessor, OfficeMax, the Acme ...


8

This can unintentionally happen. As the other answers have pointed out, what happens in bankruptcy (chapter 7 to be specific) is that another company buys the debt and life continues as normal for the debtor. From the debtors perspective it is no different than a solvent company selling off their debt to other companies, which happens all the time (...


1

No You would still owe whoever gets the banks assets.


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