QUESTION
Should I take someone to court if they still owe me $8,000.00 for a business i sold to them?
Asked on Apr 27th, 2017 on Business Litigation - Virginia
More details to this question:
I had a business with a partner. It wasn't working so he and i agreed that he would buy me out for $15,000.00, paid for the form of 15 monthly installments of $1,000.00. This was written and signed in a buy out agreement. First 6 months went well and he paid on time. Now he is saying he is struggling and keeps asking me to be patient. Its now been 3 months since his last payment and he is $3,000.00 behind schedule. Can i take him to court for the entire remaining balance, or just what he currently owes me? If i can take him to court for the entire balance, is it worth the time and cost?
1 ANSWER
Whether or not you can sue for the entire amount now depends on whether there was an acceleration clause in the contract. This is a standard clause which provides that if there is any default in payment, the entire amount becomes immediately due and owing. If there is no such provision in your contract, you can only sue for the amount past due at this time, and it would probably be a better idea to wait until the entire amount is overdue to start your lawsuit. As to whether it would be worth it, it depends on (a) whether the debtor can pay any judgment; and (b) how valuable your time is (I assume that you would handle the suit yourself, as it seems a simple case.)
Answered on Apr 28th, 2017 at 11:44 AM