M
mtofell2
Guest
What is the name of your state? Oregon
I recently purchased a small 'mom & pop' corporation with a partner. We have both been employees of the company for some time. The corp is setup as a C type corp. 2 months after the close of the sale the previous owner presented us with a credit card that has a $10,000 balance that they say is part of the corporation. Our position is that the debt was not disclosed in any of the documents or ever discussed when negotiating the sales price. They say that since the purchases on the card were all legitimate biz expenses in past years that it goes with the business. I called the CC company and the card is registered to the past owner via his SSN and has nothing to do with the corporation I bought other than having the biz name on it for the old owner's convenience. The past owners and I cannot seem to see eye to eye on this and things only seem to be escalating. Am I in any way responsible for that debt? We purchased the existing corporation (assets and liab.) but this did not come up in any of the docs because it is not a corporation debt as I see it. Am I on firm legal ground here? My plan is to just ignore them and the credit card. The CC company has already assured me that the company, my partner, and myself are in no way responsible for the debt. Thanks for any advice
I recently purchased a small 'mom & pop' corporation with a partner. We have both been employees of the company for some time. The corp is setup as a C type corp. 2 months after the close of the sale the previous owner presented us with a credit card that has a $10,000 balance that they say is part of the corporation. Our position is that the debt was not disclosed in any of the documents or ever discussed when negotiating the sales price. They say that since the purchases on the card were all legitimate biz expenses in past years that it goes with the business. I called the CC company and the card is registered to the past owner via his SSN and has nothing to do with the corporation I bought other than having the biz name on it for the old owner's convenience. The past owners and I cannot seem to see eye to eye on this and things only seem to be escalating. Am I in any way responsible for that debt? We purchased the existing corporation (assets and liab.) but this did not come up in any of the docs because it is not a corporation debt as I see it. Am I on firm legal ground here? My plan is to just ignore them and the credit card. The CC company has already assured me that the company, my partner, and myself are in no way responsible for the debt. Thanks for any advice