Legal Question in Business Law in Texas

It depends on how you buy the business. Also, if some of the assets have liens, then the debts follow the lien.

You have to purchase the assets of the business, making sure you comply with bulk sales laws with the agreement excluding any debts. If any of the assets are subject to express or general liens, the lien will probably follow the asset and you will have to pay that. The purchase of a business has many opportunities to make a costly mistake which is why savvy business people make sure they are represented by experienced counsel.

As a franchise attorney I agree with the other attorney answers. If you just bought assets (as opposed to stock), you only take the assets, subject to any pre-existing debt on these assets. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC