What to do if I sold a business and cannot get paid?
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What to do if I sold a business and cannot get paid?
I sold a landscape business to an individual last year. We made a contract stating the terms for payment and listing all property included in the purchase. The contract was signed, dated and witnessed by a 3rd party as well as the puchaser and myself. The contract specifies that I have a lein against the physical property that was purchased until the terms are satisfied. The purchaser is currently extremely delinquent and has also sold some of the physical property ( a trailer ) but did not use the proceeds from the sale for payment to me. What are my options at this point?
Asked on July 10, 2012 under Business Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
From what you have writen, it seems that the buyer of your business has no intention to pay you what is owed.
As such, you should consult with a business attorney about this situation as soon as possible to review the purchase agreement, any promissory note and security agreement to see what legal recourse you have which could be filing of a lawsuit and foreclosure on security for the lien assuming the lien was properly completed and recorded.
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