Payment for Sale of Business

[ledieb]

What is the name of your state (only U.S. law)? NC, debt was incurred in FL

I sold my small company to an ex-friend, who now refuses to pay. We have a written, signed & notarized contract, which states that his corvette is collateral for the debt. He has also refused to sign over the title, and threatens to file for bankruptcy, if I persist. What can I do?

 

[CraigFL]

Too bad you didn't put a lien on the corvette title when you closed toe business deal. Now you will have to sue to try to get your money because it's become a civil matter instead of a simple repossession which may cause the buyer to retaliate by filing bankrupcy. In the end, getting your money is tied to their business success which means you may be forced to help if they have no possessions that could be collected with a judgment.

 

[ledieb]

Thanks CraigFL

For taking the time to answer. That's what I was afraid of... Do you think an attorney would take such a case, with payment based on the sale of the corvette? I'm really broke.

 

[crshose]

pending on the amount you may can only go to civil court, but if it is worth several thousand and it goes into state or superior you might can get an attorney to take case on contingent basis. You might try and look at what other assets he may have to go after, like garnishing wages from another job even if filing bankruptcy you might can go for that. Just thoughts on my similar problems I have had.

 

[ledieb]

Thanks crshose

The corvette is worth quite a bit of money, so I guess I'll take your advice and contact an attorney. It's a shame though, I really wanted to keep it.

 

[ledieb]

Bill of Sale

In looking over the paperwork, I realized that the contract is stated as a Bill of Sale rather than an agreement. Does anyone know if that would make a difference?