diff --git a/CHANGELOG.md b/CHANGELOG.md
index 87a17c6..eb60d39 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -57,6 +57,7 @@ Categories Used:
 - Remove single quotes from clap doc comments [\#251](https://github.com/ouch-org/ouch/pull/251) ([jcgruenhage](https://github.com/jcgruenhage))
 - Fix incorrect warnings for decompression [\#270](https://github.com/ouch-org/ouch/pull/270) ([figsoda](https://github.com/figsoda))
 - Fix infinite compression if output file is inside the input folder [\#288](https://github.com/ouch-org/ouch/pull/288) ([figsoda](https://github.com/figsoda))
+- Fix not overwriting a folder when compressing [\#295](https://github.com/ouch-org/ouch/pull/295) ([marcospb19](https://github.com/marcospb19))
 
 ### Improvements
 
diff --git a/src/commands/compress.rs b/src/commands/compress.rs
index 6f5e0be..7313448 100644
--- a/src/commands/compress.rs
+++ b/src/commands/compress.rs
@@ -114,7 +114,6 @@ pub fn compress_files(
             if !formats.is_empty() {
                 warn_user_about_loading_zip_in_memory();
 
-                // give user the option to continue compressing after warning is shown
                 if !user_wants_to_continue(output_path, question_policy, QuestionAction::Compression)? {
                     return Ok(false);
                 }
diff --git a/src/commands/decompress.rs b/src/commands/decompress.rs
index 66ec78e..02e5d9f 100644
--- a/src/commands/decompress.rs
+++ b/src/commands/decompress.rs
@@ -104,12 +104,10 @@ pub fn decompress_file(
         Gzip | Bzip | Lz4 | Lzma | Snappy | Zstd => {
             reader = chain_reader_decoder(&first_extension, reader)?;
 
-            let writer = utils::create_or_ask_overwrite(&output_file_path, question_policy)?;
-            if writer.is_none() {
-                // Means that the user doesn't want to overwrite
-                return Ok(());
-            }
-            let mut writer = writer.unwrap();
+            let mut writer = match utils::ask_to_create_file(&output_file_path, question_policy)? {
+                Some(file) => file,
+                None => return Ok(()),
+            };
 
             if is_running_in_accessible_mode() {
                 io::copy(&mut reader, &mut writer)?;
@@ -139,7 +137,6 @@ pub fn decompress_file(
             if formats.len() > 1 {
                 warn_user_about_loading_zip_in_memory();
 
-                // give user the option to continue decompressing after warning is shown
                 if !user_wants_to_continue(input_file_path, question_policy, QuestionAction::Decompression)? {
                     return Ok(());
                 }
diff --git a/src/commands/list.rs b/src/commands/list.rs
index dc28be5..7af8557 100644
--- a/src/commands/list.rs
+++ b/src/commands/list.rs
@@ -67,7 +67,6 @@ pub fn list_archive_contents(
             if formats.len() > 1 {
                 warn_user_about_loading_zip_in_memory();
 
-                // give user the option to continue decompressing after warning is shown
                 if !user_wants_to_continue(archive_path, question_policy, QuestionAction::Decompression)? {
                     return Ok(());
                 }
diff --git a/src/commands/mod.rs b/src/commands/mod.rs
index ea6d58e..d05e643 100644
--- a/src/commands/mod.rs
+++ b/src/commands/mod.rs
@@ -162,12 +162,11 @@ pub fn run(
                 return Err(error.into());
             }
 
-            if output_path.exists() && !utils::user_wants_to_overwrite(&output_path, question_policy)? {
-                // User does not want to overwrite this file, skip and return without any errors
-                return Ok(());
-            }
+            let output_file = match utils::ask_to_create_file(&output_path, question_policy)? {
+                Some(writer) => writer,
+                None => return Ok(()),
+            };
 
-            let output_file = fs::File::create(&output_path)?;
             let compress_result = compress_files(
                 files,
                 formats,
diff --git a/src/utils/mod.rs b/src/utils/mod.rs
index 05e325c..e6808bf 100644
--- a/src/utils/mod.rs
+++ b/src/utils/mod.rs
@@ -15,7 +15,7 @@ pub use fs::{
     cd_into_same_dir_as, clear_path, create_dir_if_non_existent, dir_is_empty, is_symlink, try_infer_extension,
 };
 pub use question::{
-    create_or_ask_overwrite, user_wants_to_continue, user_wants_to_overwrite, QuestionAction, QuestionPolicy,
+    ask_to_create_file, user_wants_to_continue, user_wants_to_overwrite, QuestionAction, QuestionPolicy,
 };
 pub use utf8::{get_invalid_utf8_paths, is_invalid_utf8};
 
diff --git a/src/utils/question.rs b/src/utils/question.rs
index 84b0fb9..837384e 100644
--- a/src/utils/question.rs
+++ b/src/utils/question.rs
@@ -54,7 +54,7 @@ pub fn user_wants_to_overwrite(path: &Path, question_policy: QuestionPolicy) ->
 
 /// Create the file if it doesn't exist and if it does then ask to overwrite it.
 /// If the user doesn't want to overwrite then we return [`Ok(None)`]
-pub fn create_or_ask_overwrite(path: &Path, question_policy: QuestionPolicy) -> Result<Option<fs::File>> {
+pub fn ask_to_create_file(path: &Path, question_policy: QuestionPolicy) -> Result<Option<fs::File>> {
     match fs::OpenOptions::new().write(true).create_new(true).open(path) {
         Ok(w) => Ok(Some(w)),
         Err(e) if e.kind() == std::io::ErrorKind::AlreadyExists => {