Legal Question in Business Law in Colorado

"If Business owner selling his business used personal loans and personal lines of credit to fund the business, does he have right to claim a possible buyer of the business needs to assume that debt even though it's truly personal debt?"

Asked on 12/27/16, 5:20 pm

1 Answer from Attorneys

Robert Murillo Pivotal Legal Ltd.

Selling a business involves a variety of complicated agreements. As with any agreement, you can demand almost any terms that you two agree on. So you are free to require that this debt is part of the sale. You, of course, does not mean that you may not be still liable for that debt as that is dependent on the terms with your creditor and those agreements should be closely reviewed.

Please do not make the mistake to sell your business without legal advice of an experienced business attorney. The costs of mistakes and possible lawsuits far exceed the cost of a business attorney's advice. Most attorneys provide a free initial consultation.

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Answered on 12/30/16, 6:50 am

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