Legal Question in Business Law in Illinois

assumed debt and payment

i sold our business 2 yrs ago and the company that bought us was owned by a large corporation that filed for protection. The company that bought us went to the bank and bought their business back but told me they don't have to pay me even though my accounts they bought are doing great for them. Do i have any legal grounds to the money they owe me.

Asked on 1/14/02, 10:35 am

3 Answers from Attorneys

Jay Pollak The Pollak Law Firm, LLC

Re: assumed debt and payment

There is not sufficient information to draw a conclusion.

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Answered on 1/14/02, 10:51 am
Eric Fisher Law Office of Eric A. Fisher. LLC

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.

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Answered on 1/14/02, 11:10 am
Louise Aron Attorney at Law

Business' obligations after bankruptcy

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

Email: [email protected]

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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.


Louise Aron

Attorney at Law

Web site

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Answered on 1/14/02, 2:07 pm

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