What to do about collecting a debt from the sale of my business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about collecting a debt from the sale of my business?
It is for a 3 year term and the buyer has only made 2 payments in last 10 months. He will not return any calls, letters, etc. The promissory note and purchase agreement are in place and the buyer is incorporated. The total sale amount was 80k, includimg assets. From what I hear his business is demenishing and his assets are being repossessed.
Asked on September 3, 2013 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Legally, if he is violating the terms of the agreement of sale, you could sue him for breach of contract and to receive the money due you. Practically, you may have no recourse: you "can't get blood from a stone," so if the buyer is insolvent and has little or not money or assets, it doesn't matter if you sue and win--there is nothing to collect. And if the buyer is a corporation, you cannot sue the corporation's owners, only the corporation itself...and if the business "is diminishing and [its] assets are being repossessed," you're in the situation of not being able to collect anything.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.