Legal Question in Business Law in New Jersey

Default

I recently sold my bussiness for 750,000 I recieved 350,000 down on the note, collateral was the business that was sold.The new owner refinanced the equipment which was clear of all titles.If the new owner defaults on the note and the business is returned to me who has to pay the loan on the equipment, and also if I refuse to take return of the bussiness can I go to court to recover the remainder of the money that is owed to me by going after the assests of the buyer...


Asked on 10/31/05, 12:51 pm

1 Answer from Attorneys
Robert Davies The Davies Law Firm, P.A.

Re: Default

I will assume that what you have said is both accurate and complete.

There is a huge issue here: if you sold your business in part for cash and part for a promissory note secured by the business, how could the new owner go out and put a new loan on that same equipment? You are now at risk.

I suspect that you did not have an attorney represent you when you sold the business. If you did, I would have some very sharp questions for that lawyer.

I strongly suggest that you go see an attorney who handles business transactions; find someone near you.

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Answered on 10/31/05, 3:50 pm


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