Do I have to repay a debt to a business that filed for bankruptcy? 11 Answers as of March 15, 2011

If I owe money to a business and they declared bankruptcy, do I still owe them?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Depends. The trustee may have abandoned that asset back to the business owners. If that is the case they can still collect.
Answer Applies to: California
Replied: 3/15/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
A business that files bankruptcy does not relieve you of a contractual obligation to pay a debt owed to it.
Answer Applies to: California
Replied: 3/11/2011
Law Office of Larry Webb
Law Office of Larry Webb | Larry Webb
Yes, the trustee for the bankrupt business may sue you for the debt you owe.
Answer Applies to: California
Replied: 3/11/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
you may be required to pay the debt to the bankruptcy estate
Answer Applies to: South Dakota
Replied: 3/11/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Yes, if the person is a legitimate party who has purchased the debt, or has a legal right to collect it.
Answer Applies to: Alabama
Replied: 3/11/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Yes. You still owe the debt. In a Chapter 7, the Trustee could sue you for the debt. In a Chapter 11 with a Debtor in Possession, the Debtor (your creditor that is now in bankruptcy) could sue you for the money.
    Answer Applies to: California
    Replied: 3/11/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Yes. A business bankruptcy does not eliminate the debt that you owe the business it allows the business to eliminate, or manage, its debt.
    Answer Applies to: New Hampshire
    Replied: 3/11/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    Yes. Your obligation is not changed if a business you owe money to files for bankruptcy. It just changes where the money may ultimately go in the bankruptcy process.
    Answer Applies to: California
    Replied: 3/11/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Technically Yes.... but may have to pay it to the trustee in some cases. You should wait until you receive instructions on where, how and who to pay. If you don't hear from anyone, you might never have to pay.
    Answer Applies to: California
    Replied: 3/11/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    The debts owed to the corporation are an asset and the court can go after the debts owed to the corporation to pay off creditors.
    Answer Applies to: California
    Replied: 3/11/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Depends what chapter they filed and what classification of debt yours is.
    Answer Applies to: California
    Replied: 3/11/2011
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