Legal Question in Business Law in California

Only the person who you owe the payments to can answer that. If you agreed to make payments that you don't make a person has the right to sue you. Whether they will or not is up to them. Whether you may have a defense or counter claim against them for misrepresentation, failure to disclose, or other wrongdoing in the sale that contributed to the business failing will, no doubt, factor into their decision, as will whether you would be expected just to file for bankruptcy if they sue you.

You should speak to an attorney. The answers to your questions depend on a lot of facts, including what type of an agreement you signed or entered into with the previous owner.