Legal Question in Business Law in Virginia

I own an auto repair facility and I have a Net 30 fleet agreement with a landscaping company.

We performed 1,200 dollars worth of work on a company vehicle, and released it back to the company. When the bill came due, it was not paid. The landscaping company was then sold to another individual and all of the business assets including the truck were transferred to the new owner. The new owner does not feel obligated to pay for the repairs made before he took posession of the company and the old owner is going bankrupt.

What do I do?


Asked on 10/01/10, 8:30 am

2 Answers from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

You might check with the previous owner to determine whether the sale of

the business transaction included a provision that the new owner would be responsible for any pending debts owed by the business at the time of the sale, and, if so, which ones, but if these repairs are not among those included, the new owner would likely be legally "off the hook'', so to speak, for the truck repair job.

(It may also be that the previous owner has included the debt he incurred for the truck repair in his currently pending bankruptcy case which would mean

that you had best forget about it---although, if such were the case, you should have received notice of it as one of his creditors listed on Schedule F of the petition.)

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Answered on 10/06/10, 8:56 am
Kevin B. Murphy Franchise Foundations, APC

In addition to the other attorney answer, you should look into filing a mechanics lien on the vehicle. Consult with an attorney in your area for specifics.

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

Franchise Attorney

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Answered on 10/06/10, 1:06 pm


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