Legal Question in Business Law in Arizona

Re: Business loan payor in default, closed business

It is not clear from your statement what transpired, but it sounds like you sold a business and carried back a note, which the buyer has now defaulted in the payment thereof. You would need to take immediate legal action to sue for payment on the promissory note and serve the suit on the defendants before they move out of state. Once they are served with the suit in AZ, the AZ court has jurisdiction and can render judgment in your favor. If you obtain a judgment against them, you can then attach assets or garnish wages to satisfy the judgment, even if they move to another state. You do have a duty to minimize damages so the assets should not be disregarded and if the business premises were leased, do you have liability arising out of that lease? You should take action immediately.

Re: Business loan payor in default, closed business

Too little fact description to give a good opinion. Comment by Mr. Scher is agreed to by me. Was there a promissory note? Was it secured? What was the collateral? Who are the reponsible parties? Was the note assigned by the corporation to the "partners" as you describe?