Legal Question in Credit and Debt Law in Florida

I am trying collect a debt from a client who has since sold out to another company. Since the new company has assumed the ownership of the company, are they now responsible for that debt?

Asked on 8/22/16, 6:53 am

2 Answers from Attorneys

L. William Porter, III Bogin, Munns & Munns, P.A.

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There isn't a quick answer here. It's possible you could collect from the new company depending on the exact nature of the new company's acquisition of your client. For example, if it was a merger of the two companies, you could have grounds to go against the new entity. It depends on the purchase documents between the two companies and the facts surrounding what the purchase really was, i.e., a full purchase and take over of the prior company or just a sale of assets purchased by the new company. Is the same management still in control? Was it a purchase of all assets or just some? There are many questions that need to be answered to determine whether a claim against the new company would be viable. I'm sorry I could not give you a more clear cut answer.

Answered on 8/22/16, 7:09 am

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