California  |  Bankruptcy

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6/15/11, 2:00 pm

Legal Question


i BOUGHT A BUSINESS IN 2005. i AM SUEING THE SELLERS, AND THE BROKERS FOR MISREPRESENTATION OF A MATERIAL FACT (THEY OVERSTATED THE BUSINESS INCOME). I RELIED ON MY BROKER TO PERFORM THE PROPER "DUE DELIGENCE" IN EXAMINING THE DOCUMENTS PRESENTED. THE FINANCIALS WERE DOCTORED TO REPRESENT MORE THAN $300,000 MORE THAN THE BUSINESS ACTUALLY DID. I BOUGHT THE BUSINESS BASED ON THOSE FICTITIOUS DOCUMENTS. THE SELLERS ALSO ASSIGNED THEIR LEASE FROM THE LANDLORD TO ME WHO WAS ACTUALLY THE PREVIOUS OWNER OF THE BUSINESS AND PARTICIPATED IN THE NEGOTIATIONS WITH THE BROKER FOR ME TO BUY THE BUSINESS. THE LEASE IS 35% OVER MARKET FOR THE AREA. I AM NOW IN CHAPTER 13 PROCEEDINGS AND MY LANDLORD HAS FILED AN UNLAWFUL DETAINER. (I STOPPED PAYING RENT BECAUSE THE BUSINESS INCOME CAN NOT SUPPORT THE RENT PAYMENTS) CAN I HAVE THE UNLAWFUL DETAINER STAYED IN BK UNTIL THE FRAUD LAW SUIT IS SETTLED IN STATE COURT. ALSO, CAN I HAVE THE RENT WHICH I CONTEND IS 35% OVER MARKET VALUE STAYED AS WELL FROM THE 13 PLAN?


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