What happens to bank loans in case the debtor company goes insolvent?
Question by Syed Nadim: What happens to bank loans in case the debtor company goes insolvent?
I would like to know the fate / process of recovery of bank loans in case the debtor business goes insolvent / bankrupt with particular reference to UK laws. What could be the precautions which a lending banker may take while lending to ensure recovery in case of insolvency / bankruptcy?
Best answer:
Answer by GetOutofDebt.org
If it is a debt you owe the company, you still owe it. The precaution is good qualification and an appropriate interest rate based on risk to price comparable loans at a rate where the estimation of profit exceeds the estimation of loss. That’s how banks make a profit.
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Q&A: What hapeens when a payday advance loan goes unpaid ?
Question by chasead95: What hapeens when a payday advance loan goes unpaid ?
My sister-in-law has about 4 payday advance loans that she’s not paying. I’ve told her that she could go to jail for this. She says no she cant because it’s a loan, not a bad check. Does anyone know?
Best answer:
Answer by random_synchronicity
Normally when taking out a payday loan you have to write post-dated checks which they then will cash once the agreed upon day arrives. If there isn’t money to cover the checks when they attempt to cash them, then they will file hot check charges against her and she can go to jail especially if she knew the money wasn’t going to be available since that’s theft by deception.
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