Legal Question in Business Law in California

Re: Am I responsible for previous owners debts?

The answer will depend on what the agreement was when you took over the business. In addition, it may make a difference whether the creditors have reason to believe you would be responsible. You will need a lawyer to look at the documents, as well as to fight back in court. Strict time limits may be running and you should contact a lawyer immediately. If you are in Northern California, please let me know if you would like me to help. If you are somewhere else, let me know and I will see if I can give you a referral.

Re: Am I responsible for previous owners debts?

The crucial issues are whether your seller's creditors had adequate notice of the sale of the business, and the extent to which the old business is being conducted by you. However, under the Bulk Sales Law in California, and most other states, a purchaser is sheilded from liability for the debts of a previous owner of a business, so long as certain formalities are complied with. Normally, the escrow company handles the paperwork. If the Bulk Sales Law was not complied with in your case, you may wish to take action against your agent and/or attorney if you ultimately become liable. To find out more, please visit our website @ labusinesslawyer.com