What happens to my debt when a company declares bankruptcy?
I recently inherited a great deal of money from the passing of my aunt, I don’t wanna say a specific number but lets just say I am a little over ,000 in debt and I will have it paid all off by the end of the week plus still have money to live for the next I’d say 15 years or more if I invest right. my question is how do I pay off the debt to a company that is no longer in business?? I paid a accountant to pull my credit report and find everything, even the smallest thing that could effect my score. There are a few companies on there that don’t even exist as a business anymore, like I had an amp’d mobile cell phone years ago and everyone knows amp’d they filed for bankruptcy in 07 I think and nobody wanted to purchase their debt being as almost 80,000 of their subscribers weren’t paying their bill, how do I pay that if they don’t even have a way to reach them anymore and other companies like I took out a loan from a financial loan company that was up and coming in 2002 and now they aren’t even around, how do I get those things off of my credit report if I cant pay them?? Please help, I plan on opening a nightclub with in the next year and I only wanna use half of the money I inherited and get a bank loan for the rest but even with my new found fortune a bank will pull my credit score or something and still look at me funny or not do business at all with me. Thanks in advance.
Statute of limitations! Each state has a different limit on old debts, but they become uncollectible after a certain period of time, not more than 7 years. google statute of limitations + state name. Do NOT pay any time-barred debts! If a sleazy collections outfit calls you on a time-barred debt, do not admit the bill ever belonged to you, and do not agree to pay. Simply say, "IF such a debt ever existed or was ever valid, it is time-barred in this state. Do not call me ever again or I will report you to the state Attorney General, Consumer Protection Division." Hang up.
Companies that have gone out of business were adjudicated bankrupt, closed, and there is no further money due them nor bills to be paid by them. Dead issue. Any "collector" should be told "IF such a debt ever existed or was ever valid, the bankruptcy court has closed the case. Do not call me…."
Paying off all of your legitimate debts will in time improve your credit, but it does take time. Invest wisely and well! Be careful with your money, always pay your bills on time & in full, and your past will vanish off your credit reports in time. You need to make that money last the rest of your life, not a measly little 15 years. Invest and live off PART of the income. The principal MUST keep growing or it will die!