I was wondering, I know nothing about economics or banking systems or anything but, If certin banks go under and I have credit cards with them, will I still owe or have to make a monthly payment on those credit cards. I know I should pay them off but can't right now. thanks

its a free ride if the banks go belly up

charge those suckas to the limit

hey everybody...concerned190 is buying the next round

Yes, you'll have to keep making payments. If a bank fails, the debt will be bought for pennies on the dollar by another bank, whom you will then owe.

What if that bank fails?

What if all the banks fail then what ? Most banks are public companies and other banks own portions of them if they all collapsed over the course of a month or two who do you pay or who sends you a bill after they all fail.

You will be making the payment to the " World National Bank"

Based on what I hear about the mortgage debacle, the way to beat the credit card bill is to have them prove to you that you actually owe the money by providing the original contract between you and the first credit card issuer,bet they can't do that. Just a thought

Originally posted by concerned190
What if that bank fails?

Then the debt will be bought by another bank for pennies on the dollar.

If all the banks fail, then your credit card debt will be the least of your worries, believe me.

Originally posted by anachryon
Yes, you'll have to keep making payments. If a bank fails, the debt will be bought for pennies on the dollar by another bank, whom you will then owe.

Partly true, though it is important to realise that this debt is bought as a whole and no individual loan can be identified as the original paperwork must be found.

You can also claim that the agreement between you and the creditor has been made null and void due to the fact that you did not sign an agreement with this new so called owner of the debt.

You are indeed home free; the worst that could happen is you will be pursued to admit the debt is yours.

Don't admit anything, just say I don't recognise this debt and there is nothing they can do.

Even if they are able to establish you owe the debt by producing the original paperwork then, you can claim personal insolvency (not the same as bankruptcy) by producing a personal statement of incomings and outgoings. You then make a gesture offer to pay say £1 a month; if they refuse to accept this offer then you can say take me to court then.

If in the highly unlikely case they do take you to court you can produce your statement of earnings and the judge will rule that you pay a minimum payment that is within your means, normally if you have no money to payback due to your outgoings this will be £1 a month...

For this reason most banks do not take people to court over a debt and move to accept any offer you make.

What used to be a deterrent for people to do this is bad credit rating but as people are unable to get any level of credit now or for the foreseeable future, not paying your debts becomes a really attractive way forward.

Hope this helps,

All the best

NeoN HaZe.

Its my understanding that as long as they will take it -- there the dumb ones... No way to beat the system... Just max every bit of credit out and go bankrupt and keep doing that for a living ... it pays better than working for one I can tell you that...