Responsibility to Company?

[ralafu]

What is the name of your state?Minnesota

I'm currently in collections for furniture I purchased, the company I purchased it from (Levitz) is going bankrupt. What is my financial obligation to them? Do I still need to pay for the furniture in full, make a offer for a lower price or will it be wiped from credit because they are going bankrupt?


Thanks,

R

 

[fronty]

More than likely their accounts receivables account will be sold and you would still be obligated to pay the company that attains them. Things just don't disappear. The furniture company has debt that needs to be satisfied and accounts receivables is a way to satisfy those debts.

What is the name of your state?Minnesota

I'm currently in collections for furniture I purchased, the company I purchased it from (Levitz) is going bankrupt. What is my financial obligation to them? Do I still need to pay for the furniture in full, make a offer for a lower price or will it be wiped from credit because they are going bankrupt?


Thanks,

R

 

[fronty]

I reread your post and may have posted without considering everything. Did you account charge off? If so, it wouldn't be under their accounts receivables account, but someone will probably still acquire the account. Did they already charge off the account and sold it to debt collection company? If this is correct, than the furniture company filing bankruptcy isn't going to change anything. It definitely won't just be wiped clean; someone is going to want that money. If you are still paying the furniture company and the account hasn't been charged off, then disregard this post and see above.

 

[racer72]

Your account is considered an asset of Levitz, you are still on the hook for your legally binding contract when you purschased the furniture. You don't want the bankruptcy court coming after you for not paying your bill, they can get real nasty.