Legal Question in Business Law in New Jersey

I just recently sold a small auto repair shop in NJ. It was set up as a LLC (company). I took a pretty good loss. I need to cut these losses to a minimum. I have paid all bills that I have signed on personally. However there is a small amount the I signed on with the co as the gaurantee. What happens if I just don't pay these bills. My credit is excellent and I don't want to harm it.


Asked on 4/27/10, 7:01 am

2 Answers from Attorneys
Amy Klauber Klauber & Klauber, LLP

I would need to see the agreements that you signed obligating the company as well as the sales agreement to see if the new owner undertook any of your past obligation. Please contact my office for a consultation. Mention Law Guru and we will waive the consultation fee. My number is 732-663-1500. I look forward to speaking with you shortly.

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Answered on 5/02/10, 7:44 am
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

I am sorry you lost money in your business. As a business owner as well as an attorney for more than 30 years, I know these are very difficult financial times.

First, I would like to see the actual credit agreements that you signed with the suppliers. Sometimes they have personal guarantees, but it depends on the specific wording of the application. Next, I am concerned about taxes. Have you paid all employment taxes (IRS, NJ, NJ Dept. of Labor?) Also, have you paid all sales and use taxes to NJ?

Finally, I would like to read your agreement of sale, the related documents and settlement sheet.

Because I am a business lawyer, I do not have a free consultation. Our intial conference will be about one hour and we will get down to business!

I hope this helps!

Ron Cappuccio

856 665-2121

www.BusinessEsq.com

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Answered on 5/02/10, 8:38 am


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