Legal Question in Business Law in New Mexico

We sold our business and the partners are not getting along

We sold a profitable glass business about a year ago and the two couples that bought it are not getting along. We financed a large amount. Neither one can agree to buy the other out. Eventually something will happen to break the contract but what happens to us? They mortgaged their personal property to give a down payment so where does that leave us? In the event that they file bankruptcy what will we be able to do. We got personal guarantees from them but do they have to pay the banks before we get paid. How does that work out?


Asked on 2/09/02, 12:24 am

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: We sold our business and the partners are not getting along

Much will depend upon the wording of your sales agreement, but generally you may be in a position to take the business back for non-payment. First secured creditors such as banks will usually get paid first, so your chances of recovery from a bankruptcy are probably slim.

You may call toll-free if you wish to discuss the matter further, 1-800-858-3636.

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Answered on 2/09/02, 8:43 am


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