So what if Citi goes bankrupt?

[pcn]

Saw on the news this AM that their stock is less thn $1, on a sharp decline. (McDonalds fries cost more than Citi stock) Since we owe 10k Homedepot, 20k Citibank, 10k Sear MC, Citi going belly up has some "dream" capacity. What, if anything, could happen? If you own a stock for a company that goes bk, you lose it all. What if you owe them money?

[fltoo]

You file for BK and discharge the debt just like Citi should file for BK and reorganize or go under.

[BankruptinNC]

Agreed. You still owe the debt, even if they go bankrupt.

[HHM]

LOL, you still owe the money, unfortunately.

Hypothetically, if Citi were to go BK; your debt (and everyone else who owes Citi Money) is an asset of Citi's BK. It's non-exempt and would have to be reconciled; which, in the chapter 11 or chapter 7 context means someone comes in an buys the debt portfolio (at a good discount).

[kornellred]

Citi will dump all bad debt as usual. You will owe the money to some other entity.

[Reddrocket07]

This is one of the few companies I personally feel bad for. Prior to BK filing, they did everything in their power to help me pay my balance, including giving me a 0% interest rate.

[EricaCallaha]

I don't feel bad for them really. They were the worst to work with preBK. Rude reps on the phone, tried to cash a check that was made out for $100.00 and turn it into $1000.00. Just like me....they did it to themselves, so to speak. Reorganize and get it together. Though it would be a nice thought to not have to owe them.

[ready2puke]

Actually Citi was nice to me also.. they deferred both my large amts for 2 months...

[BigJohn]

Citi was the one who started the stuff rolling with us. Everything was paid on time till we got a letter from Citi claiming we had defaulted on the mortgage. With that letter, they started the process to make life miserable for us. I sent them a certified letter stating to them that if the amount they have floating around in their system which they don't know where to apply the money to is the exact amount for a payment, and that they should apply it to a payment. If they notice that amount arrived to them on time so that should eliminate a late charge which brings us up to being current and not 2 months behind. As you can imagine, we never got a response from them but they made the corrections.


Citi is our 2nd mortgage and they have been sending letters to us that they plan on sending somebody to look at the house and they might board the house up. We told our lawyer about this and it appears to be standard scare tactics. We have filed, plan to strip lien the 2nd mortgage and from what I understand, Citi isn't suppose to be contacting us because of the stay.

[samson420]

If Citi actually went under. Who would take over all of their owned debt?

Who would you pay your debt to?


I know it is not going to just go away(I wish it did, but it wont).

[BigJohn]

You can always send me the payment and I will make sure somebody else gets the money. Dumb joke.

[samson420]

I might try that. . . . . . .


Nah, I just wonder. . . .What would happen to all the held debt?

[EricaCallaha]

Someone else (company) would buy the debt to try to collect on it. You have nothing to worry about if you are already in your bankruptcy or just starting to file. Citi going bankrupt is going to take awhile to sort out.

[samson420]

It would really not make a difference. . . .

If Citi goes bankrupt it's pretty much over, that is where my wife works.


We would go under quick, a 13 would no longer apply.