If a business goes bankrupt can they continue to collect fees?
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If a business goes bankrupt can they continue to collect fees?
I used to have an account which was said to be released due to the fact that the location was bankrupt and no longer in service. This happen about 2 years ago. Now I have been handed a summons to go to court for collections on this debt. Can the company who went bankrupt still demand payment?
Asked on April 18, 2012 under Bankruptcy Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, as unfair as it seems, someone who has filed bankruptcy and used the bankruptcy laws to avoid paying his, her, or its own debts may still seek to collect from its own debtors. That is because bankruptcy affects debts owed by a person or business entity; they do not affect debts owed to that person or business entity. So even though the company went bankrupt, they may still take collections or legal action against you for the money it claims you owe it.
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