Legal Question in Business Law in Illinois

Re: assumed debt and payment

There is not sufficient information to draw a conclusion.

Re: assumed debt and payment

Did you have a contract when you sold the business?

Was there a provision for recourse if the buyer failed to honor whatever future obligations were agreed to?

You should have an attorney review the documents signed when you sold the business.

Business' obligations after bankruptcy

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

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Denver, Colorado 80209 USA

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Web site http://effectnet.com/la/

LawGuru User

Dear LawGuru User:

Though I don't think I have enough information to definitively answer your question, I offer the following information.

Bankruptcy often prevents or limits the rights of creditors to enforce debtors' obligations. I suggest that you call the attorney who handled the company's bankruptcy and ask him for a copy of any documents which purport to relieve the company of its obligation to you and/or your business. Have your attorney determine whether the company's obligations to you and your business have been extinguished.

If the bankruptcy did not extinguish the obligation, check the documents which were signed when your business was sold to find the provisions creating a continuing obligation by the purchasing company, and take action to enforce these terms.

Thank you for using LawGuru.

Sincerely,

Louise Aron

Attorney at Law

Web site http://effectnet.com/la/