Company Bankruptcy Filing

Posted by admin on April 13th, 2008 at 12:00am

Question:
If a company you have been paying has filed bankruptcy and is no longer, then are you liable to pay them them?

This company filed bankruptcy, the couple who filed is now divorced, their company is no more, is this debt legally
still owed under any law? Doesn’t this make the legal docs void?

Can anyone give me some suggestions on this???

Answer:
This is more of a legal question, unless you’re talking about your mortgage company going out of business, in which
case I know the answer.

The mortgage loan will be bought by another finance company and you are still legally liable for the payments. Divorce
has nothing to do with any of it.

Wishful thinking. The debt is still owed. It might be a bit more complex on how to pay off the debt, but it will not
vanish into thin air. The company filed BK because they owed their creditors. The creditors are going to go after the
company’s assets to reclaim some of the debt.

Of course, this doesn’t take into consideration good old fashion human error. Your debt might be overlooked (but I
wouldn’t count on that).

Although I am not legally qualified to answer this, I am guessing yes. They are still required to pay their bills -
-if only pennies on the dollar. That will be for the court to decide. If you do not pay your debt to them, you will
still be considered delinquint and it will be held against your credit rating.

Under Filing Bankruptcy