Legal Question in Business Law in Massachusetts

am i responsible for all legal bills past owed

if i am to purchase a business that has a great amount of owed debt. i.e checks that have bounced , legal actions i.e court cases. past owner cashing checks that have bounced and non paid taxes all of them


Asked on 11/11/06, 8:36 pm

2 Answers from Attorneys
Barry Levine Law Office of Barry R. Levine

Re: am i responsible for all legal bills past owed

It would all depend on how your acquisition is structured. The best way to acquire an insolvent business is through an Assignment for the Benefit of Creditors. The seller's business makes the assignment, you acquire the assets from the Assignee. The liabilities remain with the assignee. The details of this type of transaction are too lengthy to describe in the limited space available here. Please feel free to contact my office and I will be happy to discuss this with you.

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Answered on 11/12/06, 7:02 am

Re: am i responsible for all legal bills past owed

I would suggest you buy the assets of the corporation and make sure that you comply with the requirements of an Assignment for the benefit of creditors and a the bulk sales provisions and notices.

I would be happy to discuss this with you. If you do not purchase the company properly, you may be liable for any debts or claims of the old company.

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Answered on 11/12/06, 8:48 pm


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