Legal Question in Banking Law in New Mexico

I sold a restaurant to a woman for $150,000 about 2 years ago. I partially owner financed the sale. I am in second position and the bank is in first as she pays back the loan. The total remaining owed to me is about $25,000. The total remaining to the bank is about $100,000. It has been like pulling teeth getting her to pay at all over the past year or so. She currently is over 2 months late. According to our contract I can take legal action after 40 days. If I cannot get paid I wish to stop dealing with her and file a judgment against her and the restaurant. This might push the bank to do the same. She is the same amount late on payment to the bank. I guess I would like the court system to help!

John


Asked on 11/28/09, 9:43 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

You may bring suit against her for breach of contract, and if successful, obtain a judgment for the amount you are owed, with ongoing interest. The judgment may then be executed against any available and clear asset which she has. If you wish to go against the restaurant, the bank will have to be paid first as they are in the first position.

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Answered on 12/07/09, 4:11 pm


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