Mother in law receives a monthly payment from a person that bought a family business in a hand shake. The purchase price was over 700,000.00 with interest. He has been making monthly payments of 2000.00 a month.
She needs the money and wants to know how to go about making him pay a lump sum and continue to make monthly payments if he is unable to pay the whole amount. She is afraid of she goes after him he will just file for bankruptcy and she will never see the money! She has a large mortgage payment each month and needs the money he sends now
1 Answer from Attorneys
It probably goes without saying that entering into a deal for hundreds of thousands of dollars without legal advice or paperwork isn't recommended. In a typical business sale there are contracts and promissory notes that describe how much gets paid when. It would be unusual to not have any kind of collateral or security for a $700,000 loan to purchase business assets.
You are highly encouraged to seek legal advice from a business attorney who can review the transaction and discuss options.
Please understand that this post does not offer any legal advice nor any promise to represent. However, I hope you find it helpful.
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