Am I still liable for credit card debt if that company has filed for bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 11 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.
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.