I owe money to a hospital that recently filed for Chapter 7 bankruptcy. Will my debt with them taken off my credit report? Or does it stay?
Same goes for a bank. If they go into Chapter 11 or Chapter 7?
Your debt would be their account receivable which is an asset. When businesses go bankrupt, the assets are sold off. Just because the business goes bankrupt, that doesn’t give you a free pass.
The debt will stay on your credit file for the balance of the 7 year reporting period. Actually, the hospital bill may already have been sold to a collection agency.
