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?
2 Answers from Attorneys
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.
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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