you owe money to a company but they are on the brink of closing, would it be wise to pay what you owe?

Answer 1

You could just not pay it and see what results. You may end up worse off if the debt gets sold to someone else and late fees are tacked on, but if you say you did pay the fee it will be hard for the new company to prove otherwise. Its a risk but it may be worth it just to do nothing for now.

Answer 2

It is possible they might sell your debt to a debt collector, in which case someone from a collection agency might call you looking for payment. But you could take that risk....

When I was a kid, we prepaid for 2 months of karate lessons and the company went out of business 2 weeks later. We never saw that money again. So, I guess it could go both ways.

Answer 3

There debts are still valid after closing. I would pay and not wait for it to be a collection on my credit report.

It is always wise and ethical to repay money you borrowed. Stealing is never the right choice.

Answer 4

It depends on how much.. If it is a substantial amount they will most likely sell the debt to another company.. not much will change.. but if it is possible I'd consider paying them before that happens... it looks better on your credit report I think..

Answer 5

Yes because your debit will be an asset used in the final closing of the companie's books.

Answer 6

What they will do is sell this debt/collection to another company and will go after you for it. I'd pay and get a letter that it is settled!

Answer 7

You might delay the payment if they get bought out. If they just go out of business, you may be home-free.

Answer 8

No! They will write it off.