Can a bank take pennies on the dollar?

Yes, a bank can take pennies on the dollar in certain circumstances, typically during debt settlement negotiations or bankruptcy proceedings. This means that creditors may agree to accept a reduced amount of the debt owed, often significantly less than the full value. However, this is usually dependent on the borrower's financial situation and the bank's policies. Additionally, such settlements can have implications for the borrower's credit score and future borrowing ability.