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You owe money to a bankrupt company do you still have to pay the debt?
Wiki User
∙ 15y ago
Absolutely.
Their bankruptcy only means they may get relief from paying their debts. It doesn't change your obligations at all. (If anything, it means it's harder for you to avoid them, because now, others - includinf the Court) are interested in making sure they get what you owe).
In fact, all that companys assets, (and your account receivable is one), will be used to pay what they owe...and the court will make sure all of those assets that can be collected are, and are used for that purpose.
Wiki User
∙ 15y ago
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If a collection agency goes bankrupt how does someone find out who owns the debt?
Even if the collection company goes bankrupt, you still owe the bank whatever money you borrowed from them. The bank hires the collection company to get that money, so you still owe them
If you have credit debt and that institution files bankruptcy do you still have to repay?
Yes. The bankrupt institution will pass your debt to its creditors that it owed money to.
Do you still owe your debt if the credit card company went bankrupt?
Yes. Unpaid accounts with a company that has filed for bankruptcy are still collectible. Outstanding accounts become part of the bankruptcy proceedings.
Who is responsible for a corporation debt?
the corporation
Can a bankrupt company demand payment of debt?
Only if they cannot provide services to you that were paid for.
If a collection agency goes bankrupt how does someone find out who owns the debt?
Even if the collection company goes bankrupt, you still owe the bank whatever money you borrowed from them. The bank hires the collection company to get that money, so you still owe them
If you have credit debt and that institution files bankruptcy do you still have to repay?
Yes. The bankrupt institution will pass your debt to its creditors that it owed money to.
Do you still owe your debt if the credit card company went bankrupt?
Yes. Unpaid accounts with a company that has filed for bankruptcy are still collectible. Outstanding accounts become part of the bankruptcy proceedings.
If a mortgage company goes bankrupt can the company that bought them out legally collect on your old debt?
Yes.
Who is responsible for a corporation debt?
the corporation
Can a bankrupt company demand payment of debt?
Only if they cannot provide services to you that were paid for.
If you buy gm now and they go bankrupt you lose your money?
That's generally what happens when you make a bad investment. Stock is equity...ownership....not debt or a loan to the Company.
Who is responsible for a corporation?
The corporation is responsible for the corporation's debt. Normally, there is a financial officer who pays the bills. If the corporation fails and goes bankrupt, people simply do not get paid. If the company is bankrupt and there is money, a judge appoints someone to pay according to a plan.
Can the insurance company owe you money if their check is no good?
If the insurance company owed you money and they attempted to pay that debt with a cheque that was not honoured the the debt is still outstanding. They may also be liable to other charges.
Does a lien hold if the company goes bankrupt?
unless it is written off by the court, it does. I would assume that it would be listed as debt by the party going bankrupt.
What is the status of subordinated debt?
When a company goes bankrupt a debt can go into subordinated debt. This means the subordinated debt has a lower priority than other debts. Typically this has a lower rating of credit.
If your company goes bankrupt to avoid paying debt or loans is your non-solicit agreement still enforceable?
In a C-11 reorg...almost certainly your agreement remains in force. In a C-7 dissolution, it may be still in force, but there is normally no company left to enforce it.
