Levitz Furniture...???

Question

I know Lezitz Furniture went out of business but my father told me today that he is still paying off his accout balance to the previous Seaman's Furniture. Is there an explanation for this?

Answer 1

Look at it on the small scale.  If you were to own a dog sitting business but decided to quit doing it, wouldn't you still want the money owed you?  The companies do as well.  There is still someone there to collect the money owed.  Usually, if they went bankrupt, that money then goes to the people they owed money to.