Am I still liable for credit card debt if that company has filed for bankruptcy?

The store apparently filed for bankruptcy 8 months ago. A form letter was posted on their website last month stating that they filed for bankruptcy. There are no options anywhere now for me to go and check my account or pay on it. The 800-number posted is a recording and (as does the site) only indicates what “customers” should do to file a claim (if they purchased furniture but never got it and can’t get their money back). I’m at a loss as to whether or not I still owe, or if I’ll be waiting until another company picks up the slack and asks for that money.

Asked on July 12, 2012 under Bankruptcy Law, Virginia

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

In all probability, you will just have to wait until things get sorted out in the company's bankruptcy.  Typically, the trustee, if one is appointed, will sell the portfolio of assets to a third party who will attempt to collect and pay the assets to be distributed to the creditors of the estate ( in this case, the company's creditors).  The accounts receivables of a company are assets which can be liquidated.


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