Unpaid business debt

[jmc927]

What is the name of your state? Colorado

Have a former customer that owes me $1800 for several months; he sold the business to a new group that claim it is not their debt. The former customer refuses to return phone calls.

Who should I sue in small claims court? The new owners of the business or the former owner?

[CraigFL]

The sad news is that the new owners MAY not have to pay the old debt. If they retain the old name and took over the assets and customers(goodwill) though, it's hard for the court system to accept that they didn't assume the debt too. If the name is the same and if it's a valid company, the selling agreement must have handled the debts and assets in some way --- probably the new owners assuming. It's important to deal directly with the owner(s) in order to get this straightened out because the worker bees may just be blowing you off.

In the end, if no one faces up to paying and the name is the same, you sue that name in court.

[jmc927]

Thanks Craig. The new owners brought the name of their existing business and changed the name from the business that owes me money.