QUESTION
If I sold a business and the new owners are not paying the debit and because I have a personal guarantee I'm being sued, what can I do?
Asked on Jun 28th, 2013 on Bankruptcy - New Jersey
4 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
You can sue the new owner, but the lender has a right to pursue their legal remedies. See the contract for those remedies.
Answered on Jul 01st, 2013 at 1:50 PM
File a cross-complaint against them in the same action. It is the best way to go.
Answered on Jun 28th, 2013 at 1:19 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
That depends if your contract of sale has an indemnity clause. If it does, third party them in
Answered on Jun 28th, 2013 at 11:35 AM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
File suit against them. Depending on the relationship between what you guaranteed and what they agreed to pay, it may be possible to join them in the same lawsuit as third party defendants. For example, if they agreed to pay the debts of the business, you can third party them.
Answered on Jun 28th, 2013 at 11:35 AM