Originally Posted by still.unsure

as nice as that would be, my understanding is that no, the debt doesn't disappear when the bank stops trading. instead, your 'debt' (i.e. USD$10k) becomes and 'asset' to the administrators of the receivership. the administrators, being responsible for repaying any of citi's creditors, would pursue you for the USD$10k (or as much of it as possible) so that they could use it to repay the creditors to citi. what i understand happens in reality is that your debt to citi is then sold to specific debt collectors (who pay maybe $0.70 in the $1 for it, allowing the administrators to get some money for it now) and then the debt collectors come after you for it.

so, to cut through all that, no, don't go nuts on your citibank card, someone will eventually come asking for you to repay it (it may just not be citibank...)

Originally Posted by Eva

Originally Posted by Confucius

No, I fell for you...Smartass...

Really, I'm under the impression that they get you to pay an insurance (Credit Shield, or something) when you get the monthly statement on the card, I always thought its to pay off the debt in case the cardholder emigrates to the other planet...
And also, as for car or personal loans, IIRC, they also let you pay in advance an insurance premium in advance all in one go...
Please some banker, or an Indie, correct me if I'm wrong...

Originally Posted by still.unsure

the insurance part is (usually) to protect the bank (and your credit rating) if you become unable to make the minimum repayments (b/c of illness, loss of job, etc.).

it all becomes null & void if the bank goes bust and the insurance doesn't protect you once the debt has been sold to another party.

(am sure that there's more enlightened ppl that can add to this!)

Originally Posted by Confucius

We'll wait for them to also clarify...
Thanks muchly for your input...
It's time for you to get a karma...Your 1 box will become 8 now...