Legal Question in Credit and Debt Law in Massachusetts

Sold business/New Owner hasn't Paid

I am disabled and in April I sold my business to a supposed ''friend'' for

$12K. He promised to pay me $1000/mo. but hasn't. Now, my vehicle doesn't run so a Dealership

has a 2004 Ford Explorer selling for $12K. He said he'd make the payments but wasn't approved since he has numerous write-offs and delinquencies. I need a vehicle desperatly. They ran my credit and I was approved since my name would be on the title. So, he would be the Primary borrower and I'd have to be the co-signer. If he defaults I'm screwed and my credit is in the gutter as well as his. He can't get a Home Equity loan either.

If I go through w/this is there any way I can protect myself or any legal instrument I can get him to sign??? PLEASE HELP!!!


Asked on 10/23/07, 4:20 pm

2 Answers from Attorneys
Christopher Vaughn-Martel Charles River Law Partners, LLC

Re: Sold business/New Owner hasn't Paid

For a number of reasons, you should not purchase a vehicle with this friend of yours. Don't let him make it more complicated than it really is: your friend owes you $12,000.00 - period.

You should demand that your friend pay you $1,000 a month, or some other amount that he can handle. When you sold your business to him, did you get anything in writing?

Since you know your friend is not reliable, why would you want to entangle yourself financially any further with this fellow?

If he can afford the payments for the automobile (like he is promising he can), have him make the payments directly to you.

If you would like further assistance, please let me know.

Read more
Answered on 10/23/07, 6:55 pm
JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: Sold business/New Owner hasn't Paid

It sounds like you may have an action against your "friend" for the $12k he promised to pay you for your business. If you were to sue him and prevail, you'd have an enforceable judgment which you could execute on to get your $12k, which would enable you to pay for a vehicle. There is no magical legal instrument which your friend can sign which will compel him to pay, other than a stipulated judgment for $12k.

Read more
Answered on 10/27/07, 11:30 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Massachusetts