If Company Goes Out Of Business, Do I Still Owe The Debt To Their Collection Agency?

by Rita
(New York)

Originally, my daughter's physical therapist overbilled my daughter and after much fighting back and forth, they sent the bill to a collection agency. The BBB didn't help me and I just gave up fighting and agreed to pay $10 per month - even though it was despicable because my daughter was a minor when this happened and it was an overbilling and they refused to listen.

Regardless, fast forward to now, they are dissolving their business (2 partners) and going into 2 separate practices. My question: I still owe $865 to the collection agency from the "debt." Do i really still owe that if the original practice went out of business?

Comments for If Company Goes Out Of Business, Do I Still Owe The Debt To Their Collection Agency?

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May 18, 2011
Billing Dispute Company Out of Business
by: DebtCollectionAnswers.com

We are not attorneys, so we cannot give you legal advice. However, you may find that the collection agency will not stop trying to collect the balance from you just because the company went out of business. The collection agency may have purchased the debt from the medical practice. If so, then there is no reason for them to stop trying to collect. If it is collecting on behalf of the business, then it would depend on what the business does with those accounts that are still outstanding.

If your account is in collections, it likely already appears on your credit reports as a collection account. You can check to be sure. So at this point, it doesn't sound as if it matters whether you settle the debt or paid in full as far as your credit is concerned.

Have you thought about trying to negotiate a settlement with the collection agency for an amount you think is fair? They may be happy to take a lump sum to resolve the debt, rather than collecting $10 a month. But you must make sure that if you work out a settlement with them that you get the terms in writing before you pay them. The settlement agreement should clearly state that when you pay the agreed upon amount, the debt will be resolved in full.

Oct 04, 2011
cuircut city out of buisness
by: Anonymous

I had a circuit city credit card, which i had a balance from the last statement was a little over $3000.00. In 2007 I was disabled and could not work, so I decide to consolidate my bills so I could pay them off with a lower interest rate. In 2007 I think circuit city went out of business and there (bank one) was taken over by (chase bank).In 2009 collection started sending me letters, and during that time I had no idea why chase was asking me for money, so I started making phone calls, and no one was telling me or could tell me where this bills was from. Until now after my third try to the bank and frustration I finally found out that it was from circuit city. Know my problem is that I can't find any old statements from circuit city and there's no way of getting them, but from 2007 through 2010 I have payed off over $3400.00 so as far as i was concerned I payed them off in full.But they are still saying that I owe them over 2000.00 how can that be!!!. Do I have no choice and now take there word for it that I owe them more. What can I do,should I see a lawyer or what. Any advice is better then no advice

Reply from DebtCollectionAnswers.com:

We absolutely recommend you at least talk with a consumer law attorney. You may be able to get low-cost or FREE help with your debt collection situation. At a minimum, we recommend you file a complaint with the FTC at FTC.gov since you are not the only one who is experiencing this type of problem where it's impossible to figure out the balance on a collection account.

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