Tuesday, July 27, 2010

Legal advice needed regarding debt responsibility in a business?

I have been for all purposes pushed out of my business by my landlord, who didn't renew my lease, after 5 years. He now operates my business (a restaurant), and has never paid me for any good-will.


My question is, I had open bills from creditors who are looking for me to pay. My position is, since my former landlord is running the business (a different legal name, I think, but he is DBA the restaurants name) he should be responsible for carrying the open debt.


Where do I stand legally to challange the bill collectors, if possible?Legal advice needed regarding debt responsibility in a business?
This question screams for a lawyer.





If both businesses are sole proprietorships, you could make the case that you had sold the business to him to make good your rental debts. Technically, in a transaction like this, the buyer of a company takes on both the assets AND the liabilities... Unfortuantely this sounds like a sales contract was not drawn up.





I suggest, since you're obviously not rich, that you at least seek some pro bono guidance from a legal clinic. Good luck.Legal advice needed regarding debt responsibility in a business?
Now that is an interesting situation. Why have you not contacted an attorney? How can someone step into a DBA that you own?


On the other hand, you probably personally guaranteed your credit when you applied, and that follows you. This could get tricky if credit is still being supplied to the restaurant DBA under your credit agreement. Time for an attorney consult.

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