Do I have to repay a debt to a business that filed for bankruptcy? How? 9 Answers as of August 17, 2015

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

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Yes. Your debt to the bankrupt company is property of the bankruptcy estate, and the Trustee will usually seek to collect it. There is opportunity to negotiate over the exact amount, which you might well wish to do.
Answer Applies to: Wisconsin
Replied: 8/17/2015
Ronald K. Nims LLC | Ronald K. Nims
Yes, you still owe them. Bankruptcy gives the filer protection from their creditors, it does not offer any relief to those who owe the filer.
Answer Applies to: Ohio
Replied: 8/17/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If they are still in business then yes, the bankruptcy got rid of their debts to others, not others obligated to them.
Answer Applies to: New York
Replied: 8/17/2015
Mauritz Van Niekerk, Attorneys at Law
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
Only if the trustee demands it from you.
Answer Applies to: New York
Replied: 8/17/2015
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
Although the business filed bankruptcy, you are still legally responsible for the debt. The debt you owe is an asset of the bankruptcy estate of the business and the bankruptcy trustee has the right to collect all debts owed to the business, including bringing a lawsuit if needed.
Answer Applies to: California
Replied: 8/14/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes. The person that will collect is the trustee or the debtor if they filed a chapter 11 bankruptcy. Consult with local counsel. They can look the case up on the Internet and the status of the bankruptcy.
    Answer Applies to: California
    Replied: 8/14/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    It would have helped if you indicated what kind of bankruptcy this business filed. In chapter 11, a business will continue to own all of its assets. If the business filed Chapter 7, the assets of the business, which would include any money you owe to the business, now belongs to the representative assigned to collect and distribute the assets of the business to its creditors.
    Answer Applies to: Nevada
    Replied: 8/14/2015
    Stephens Gourley & Bywater | David A. Stephens
    If you personally guaranteed it you would have to pay it, or if the business was a sole proprietorship.
    Answer Applies to: Nevada
    Replied: 8/14/2015
    Danville Law Group | Scott Jordan
    Yes you do. You would pay the Trustee of the bankruptcy estate, if one has been appointed.
    Answer Applies to: California
    Replied: 8/14/2015
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