GMAC may file for bankrupcty . . .

Financially finished?

GMAC will go bankrupt. The U.S lending giant is cut off from all lending sources. Smart depositors will flee its small bank (relative to GMAC itself). And its majority owner, Cerberus, won’t save it. It’s a pure liquidation play now– with the bank going into FDIC receivership, maybe as soon as this Friday. Whether or not all Hell will break loose is an open question, with many answers…

Speculation???

Elias seems to make some very valid points . . . this might deep six any plans GM has with Chrysler given the 'swap' idea they've been floating with Cerebrus

The implications are so far reaching for GM in general, you have to wonder if the feds will step in to stop this one too.

So...what then happens to my car payment through GMAC? I am hoping for free car...but I doubt it.

Thank GOD that this might torpedo the GM/Chrysler merger talks. I've owned Mopar my entire life with few exceptions, and it saddened me to know that my next vehicle, the Dodge Challenger R/T, will be shoddily manufactured by GM.

Originally posted by Rook1545
So...what then happens to my car payment through GMAC? I am hoping for free car...but I doubt it.

Exactly what I was thinking. Who will I make my monthly payments to, and will they remain the same amount?

IF (and it's still an if at this point) GMAC goes bust, their debts - your car loans - would be purchased by another bank for pennies on the dollar. You would then make your payments to that bank.

So, for example, if you have an outstanding car note with GMAC for $5000 and they were to go BK, Bank X would buy your car note for, say, $1000. You would make your car payments to Bank X, and if you pay it in full they would make a $4000 gross profit plus any interest.

Your payment amount and loan terms probably wouldn't change because that just gets confusing for all parties. It could happen, but it's more likely that it wouldn't.

Thank you for the information, anachryon... I figured as much, but you never know... we are in a new game now.

Alternatively, they can settle with you.

For example....say they bought "your" note for $400. You owe $10,000. They can offer to settle with you for say...$5000. Sounds great, right?


There's a caveat. You have to pay capital gains taxes on that $5000 you didn't have to pay.

Do you guys realize GMAC is not just for car loans?

I make my mortgage payment to GMAC. I don't know when they started doing it, or how bad their mortgage exposure is, but it's sounding to me like they might have got caught in the mortgage crisis too.