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What happens to a loan if a finance corporation files for bankruptcy?
Wiki User
∙ 13y ago
Nothing spectacular happens. And you are still liable for the loan payments.
Most bankruptcy filings are for Reorganization, not for 'going-out-of-business'.
The 'filing' of bankruptcy is done in a Bankruptcy Court. A judge oversees the orderly progression of the bankruptcy.
If the finance corporation has filed for reorganization, then you will continue paying them -- because they are not going out of business
Otherwise, your loan and every other loan will be sold to another financial institution -- and you will pay that new company.
No matter what, you still have to pay the full amount of your loan.
Wiki User
∙ 13y ago
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