Legal Question in Credit and Debt Law in Michigan

collection from a company no longer in business

when a company goes out of business and you had a contract with them that states that if you get out of the contract before it ends you have to pay $300.00, can they collect using a collection agency?

Asked on 8/23/06, 11:32 am

2 Answers from Attorneys

Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: collection from a company no longer in business

If the company sells your account and the assignee (company that bought your account)continues to provide the same service, I believe that you have a continuing obligation to pay pursuant to the contract.

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Answered on 8/23/06, 1:28 pm
Gregory J. Roth Gregory J. Roth, PLLC

Re: collection from a company no longer in business

It is possible, especially if the the company is a Michigan corporation, that the company could continue to collect debts, even if no longer doing business, before it was completely and properly wound down. An assignment to another company would not be necessary. Good luck.

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Answered on 8/23/06, 6:41 pm


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