banking
I owe money to SVB and I have deposits with SVB. What happens now?
<p>I have 10 million USD deposited with Silicon Valley Bank. Now that they are liquidated, let's say I get to recover FDIC insured 0.25 million plus 5.75 million, total 6 million.</p>
<p>At the same time, I owe Silicon Valley Bank 4 million dollars. What happens? Do the unrecovered deposits and loan cancel each other out? Or do I have to pay them back 4 million?</p>

<p>Your liabilities <strong>are not canceled out with your claims</strong> automatically. If this is a real story, it's best to talk to a lawyer familiar with bankruptcy proceedings.</p>
<p>You still owe money to whoever owns the bankrupt bank now - that is, to the State of California. This debt stands to be collected.</p>
<p>During the bankruptcy, your claim will be resolved in order of priority. After FDIC payout, the rest of your deposit will be <a href="https://www.fdic.gov/consumers/banking/facts/priority.html" rel="noreferrer">priority unsecured debt</a>. It is prioritized after priority payments and secured debts, but before non-priority unsecured debt.</p>
<p>It is theoretically possible to lose the full deposit and still be liable for the debt.</p>
