What happens to my credit card debt low interest for life APR if the company goes bankrupt?
What happens to my credit card debt and more specifically my very low interest for life APR if the company goes bankrupt?
- jon bLv 41 decade agoFavorite Answer
It depends on what is happening with the company at time of bankruptcy (merger, takeover, outright fail . etc.). The most likely scenario however is:
New company picks up the debt - and whatever balance is on the cards is now due to them. For instance, company B buys the portfolio from company C - everyone now owes company B.
Likely with low APR cards, and this isn't guaranteed, but a possible scenario - and it may even be spelled out in the small print that goes with the card - likely though company B won't want to keep this card around. If it says in the contract that they can't raise the rate, then they will likely close the account. Any outstanding balance will be able to be paid back under the current terms, but no more spending. Also, as a great favor, they will likely offer you a new card/account - but at worse terms.