Legal Question in Credit and Debt Law in Massachusetts
We signed an Assignment and Execution for a stated amount of money to a company that buys debts. The money is being held in escrow until the courts allow the amending of the execution to the new owners. The courts have approved the motion. The new owners (a large company) is now backing out because they found that the defendent named in the judgment has a tax lien. There is nothing in the agreement that says the assignment was contingent on due diligence. At the last hour our attorney is telling us even though due diligence isn't written in the agreement it was assumed. The company is offering a very small portion of the original agreement and our attorney is advising us to take this small amount.
3 Answers from Attorneys
Unfortunately, there is not enough information here to evaluate this transaction. As is almost always the case, there is a legal answer and a practical answer. Your attorney may be giving you the best practical answer, given how much you want to spend on fees, timing considerations, etc. It does not sound right, however, for a party to back out of an agreement unless there is some fraud, misrepresentation, or concealment of facts, etc., on your part. It sounds like you already have counsel. If you would like a second opinion or an evaluation of your case, make an appointment for a confidential and no-obligation consultation with our office.
Your rights are governed by your agreement with the debt buyer. Without reading the agreement no one can advise you on what rights you have. Feel free to contact me.
I agree with and add to the previous two responses. I've been practicing law for 35 years and have never heard of an "Assignment and Execution". I can imagine what one would look like but cannot imagine why a tax lien interferes with the performances called for.
The best I can guess is that you have a debt. The debt has been sold. You have an agreement with the debt buyer to pay the debt in full at a reduced amount. Some court (what court?) has approved this. I don't understand why the money is held in escrow and why a tax lien interferes with anything. The tax lien only interferes if property, in addition to money, was being paid, but you do not say anything about that.
L. Jed Berliner, Esquire
BerlinerLaw
95 State Street, Suite 1010
Springfield, MA 01103-2081
(413)788-9877
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