What happens when a bank files it’s bankrupcy ?



If I have a deposit of XX amount in a bank and the bank goes bankrupt, what will happen to my deposits ?? Will I get it back ???
Also, what happens to the Loans given by the bank ????

What happens when a bank files it’s bankrupcy ?
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3 Replies to “What happens when a bank files it’s bankrupcy ?”

  1. Depositors may get their principle amount without interest late i.e. when another bank takes over this ‘bank’ or when the Authority force them to do, they will do it when they are in position to do. Some time they are never in position than the depositors money goes for ever


  2. If the bank is FDIC insured your funds are guaranteed by the US government up to $ 100,000. Typically banks do not declare bankruptcy as they are regulated heavily and are taken over and or shut down by the government prior to bankruptcy even being an issue. Loans issued by the bank are an asset and are sold to or serviced by another bank or creditor. You still have to pay.


  3. If there is any deposit guarntee insurance is there with the bank u will get the amount subject to the terms and conditions of the insurer. the official liqudator will moniter the liqudation process such as collecting the loans and selling the assets and the balance if available will be paid to meet the liabilities like your deposit. In short you will not get the money when u need it or somethimes never





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