If the company I owe money to sells my debt to someone else, do I still have to pay the new people even though I have received no goods from them?
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If the company I owe money to sells my debt to someone else, do I still have to pay the new people even though I have received no goods from them?
Asked on December 7, 2011 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, you do need to pay the new owner of the debt. Debts may be sold, like anything else--when a debt is sold, the purchaser buys the right to receive however much money from the debtor. Think of it like selling a bond, or rental property--whoever buys it has the right to get the interest or income from the asset.
In total, between old and new debt owners, you only need to pay the total amount of the debt; so you continue paying the new owner as if he or she were the old owner. You do not need to "re-pay" any amounts previously paid to the old owner.
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