If you have a creditor that you owe money to and they (the creditor) files bankruptcy,are you still liable for the owed money? The creditor is not an individual ,but a company.

Yes you still owe them the money. In bankruptcy they may or may not go out of business. If they stay in business that is easy you will owe them the money. The bankruptcy does not always mean they go out of buiness but often merely re-organise. The airlines do it all the time. They just don't owe the people they owe. You would have to go bankrupt not to owe them.

If they do go out of business, normally the bankruptcy courts will "sell" the accounts recievable ( that is the money you and others owe them) so some company will buy these accounts and then they will be the owner and collect on them. So you may well find yourself down the road oweing XYZ firm the money but you will owe someone the money.

It would be nice not to owe them anything eh?

Unfortunately for you, you still do. The bankruptcy trustee will collect all the assets, or sell it to a collection agency.

The only way for you to avoid this is to claim bankruptcy on yourself.

Thank you for answering,Wasn't sure.