Legal Question in Bankruptcy in Texas

paying a debt to a company that has filed bankruptcy

I received a phone call from an obvious collection agency regarding a past due rental agreement. I was told I was going to get served papers for theft of rental property. I had no idea what this was regarding. I rented a trumpet for my son in 1999( I know the statue of limitation is 4 years but what if the contract was until 2001?)The rental agreement stated that if I was delinquent in my payments that they would automatically charge my credit card...I ok'd this. Bills on the trumpet stopped coming....I assumed it was paid for. Never heard another word and actually forgot about it until I got this phone call. The company I rented the trumpet for filed bankruptcy 1 year ago. I still have the trumpet and offered to give it back and if I owe (they say 375.00) I will pay. Do they have to give me proof and paperwork of where that amount derived from? They said they will turn me over to the attorney general if I didn't authorize them to remove money directly from my checking account....Help!


Asked on 4/16/03, 10:52 am

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: paying a debt to a company that has filed bankruptcy

Doesn't sound like you have done anyting wrong. First you are entitled to know that the collection agency either owns the account or represents the owner of the account. Whoever you rented the trumpet from still owns it so they are entitled to its return. You owe rental payments pursuant to your agreement with them. You may have signed a lease purchase contract where if you pay a certain number of payments you own the trumpet. Read your contract. With regard to the threats, they are probably a violation of the Texas Debt Collection Act. You are entitled to get their calculation of the amount you owe. Send them a letter and tell them you will pay them in full when receiving and reviewing that information. Larry Maun 713.266.2560

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Answered on 4/16/03, 11:51 am
Andrew Nichols Law Office of Andrew B. Nichols

Re: paying a debt to a company that has filed bankruptcy

Do not under any circumstance give them authority to draft anything from your checking account. Report this agency to the Attorney General's office of consumer affairs.

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Answered on 4/16/03, 2:13 pm


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