If I owe a debt to a company, and they have sent me to collections, what happens if they go out of business?

Answer 1

The collection agency has purchased your debt from the orignal debtor, therefore, you are now thier problem. You dent was probably sold for pennies on the dollar, just so that they could salvage something. The collections agency is never going to leave you alone until you pay them, it is in your best interest to do so, they can and will make your life much harder than it needs to be.

Answer 2

If it was sent to an outside collection agency you still owe the debt. When a debt goes to an outside collection agency typically the agency has "bought" the debt and will keep the money collected. If the company went out of business they almost certainly sold all their accounts receivable (right to collect money owed to them) to outside parties first so that they could get as much money out of the business as possible before going under. You almost certainly still owe someone this money.

Answer 3

When a debt goes into collection it is sometime bought by that collection company for pennies on a dollar and the debt now belongs to them.
This is common practice by companies to keep your debt on your credit report longer than 7 years. Each time it is sold it becomes a new debt to a new debtor. Try to offer them a settlement for a lessor amount. Start low, you can go up, never down.

Answer 4

The collections agency bought the debt so you now owe them. The original company no longer matters.

Answer 5

i think they could seize your persona lassets if you fail to pay up your debt, especially if they are closing down as they need the mone ynow more than ever. it is highly unlikely they will consider u as a bad debtor unless u declare bankruptcy, which is the worst case scenario.

nevertheless, all these depends on your terms of agreement with them

Answer 6

they sell it to another company