Am I liable to pay a loanthatI took out for services that were only partially provided by a company that has just filed for bankruptcy?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Am I liable to pay a loanthatI took out for services that were only partially provided by a company that has just filed for bankruptcy?

I contracted with a dental group to have dental work done. In order to pay them, I signed a contract with a separate financing company for the full amount. Now that the dental group has closed and will probably file for bankruptcy, I will not be able to receive the rest of my services, which are about 1/2 done. I have filed a dispute with the finance company and WI state consumer protection about this. As of now, I have paid the finance company about 1/2 the amount owed. Am I liable for the remainder, even though I know I will never receive the services contracted for? Any suggestions?

Asked on January 6, 2011 under Bankruptcy Law, Wisconsin

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Well you definitely took a good first few steps by filing a dispute and with your state consumer protection agency (is that the same as the Attorney General's office as well?) but I really think that you should have the agreement reviewed by an attorney on your behalf.   I am hoping that the agreement has a contingency clause in it, meaning that payment would be contingent upon the services rendered by the dental group.  If it does not have one I am pretty certain that any Judge would assume that it is contained in the agreement (even though they are not supposed to really read in to contracts) and that it would be found to be a condition precedent to payment.  Make sure, though, that that financing company does not file anything with the credit bureaus for non-payment here.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption