Legal Question in Business Law in California

Transfer of business debt when selling/buying a business.

Can a business name be sold without the buyer being responsible for the debt/obligations of the original business? We purchased advertising in a directory. The directory charged it twice to our credit card in April/May. We just discovered it--cc co. says past the 60 days. The new owner of the directory claims to have purchased the name only--not the debt. They claim to have posted this in a paper in FL. However, they have listed us on their internet directory. The print version--which is what we were billed twice for--was never produced. The original owner absconded with the funds around July or August. Other advertisers have had the same happen to them. It was CA based and now appears to be FL based.

Do we have any recourse?


Asked on 1/25/00, 5:50 pm

1 Answer from Attorneys
John Hayes The John Hayes Law Offices

Re: Transfer of business debt when selling/buying a business.

Normally when a business is sold the buyer buys the assets and any debts are to be paid off with the assets of the company. Without speaking with you and getting additional information about exactly what happened, how much money is involved,

and if the original company went bankrupt or simply sold their accounts, I cannot give you sound legal advise or even tell you where to start. If you would like to speak with me or email me with more information I would be happy to review it for you and help you determine if you have a case and whether or not it is worth persuing. I can be reached by phone at 877-546-9918 or by email at [email protected]. I look forward to hearing from you.

Sincerely,

John Hayes, Esq.

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Answered on 1/26/00, 3:12 am


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