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Bill Wants to Know “Do I have to Repay My GM Credit Card if GM Goes Bankrupt?”

“Dear Steve,

I have a GM credit card and if GM goes bankrupt will I not have to pay that back?

Bill”

Dear Bill,

Today is not your lucky day. If General Motors does wind up going bankrupt you will probably lose any perks or rewards you’ve earned but not used from your GM Card. Those perks are a liability for GM and it is no different than when an airlines goes bankrupt and all the air miles are wiped out.

If GM goes bankrupt it will not absolve you of your responsibility to repay the underlying loan to the issuing bank.

Sorry to be the bearer of bad news but I agree, it would be really sweet if it did work that way.

Steve

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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