For example, my mortgage is through JP Morgan Chase. Do credit cards and mortgages and such just get wiped out? Or do they demand people pay their balances all at once? Or does another bank buy them out and the debts are transferred? How does all of that work?
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Usually bought out by a different bank. A lot of times you won’t even know. Our mortgage company was consolidated into another bank a couple years back. Fucked up my taxes a bit because I had to wait for the print out from each bank.
Would this work for a sum as large as a house mortgage though?
Surely they have weaseley legal ways of screwing you though, like acquiring the folded company first and saying we still the same entity?
I have heard this theory. Along with debt collectors. Man I should of fought that with the mortgage company. I will def keep this in mind if any company we use bellies up with what’s going on. Hahaha
But, in this case it's JPMorgan, one of the big 4 that are allowed to freely print Fed funny money. If they fail, the rest will, too.