going out of business

[help-us-please]

What is the name of your state? Illinois

I bought a business nearly 4 months ago that is failing. I feel that the previous owner misrepresented her financials and now I am stuck and need to get out before I am eaten alive. I still owe the previous owner 55 thousand dollars because she holds the note to the loan for the business and my lease for the store front does not expire for three years. Furthermore, if I were able to sell the business, the landlord charges me a 10 thousand dollar assignment fee. What can I do? Can I file for bankruptcy? If I file for bankruptcy, what would I be responsible for? Would I lose everything that I own. Would my credit be shot? Can I sue the previous owner for financial misrepresentation? This is definitely the biggest mistake of my life. What are my options if any.

 

[seniorjudge]

What is the name of your state? Illinois

I bought a business nearly 4 months ago that is failing. I feel that the previous owner misrepresented her financials and now I am stuck and need to get out before I am eaten alive. I still owe the previous owner 55 thousand dollars because she holds the note to the loan for the business and my lease for the store front does not expire for three years. Furthermore, if I were able to sell the business, the landlord charges me a 10 thousand dollar assignment fee. What can I do? Can I file for bankruptcy? If I file for bankruptcy, what would I be responsible for? Would I lose everything that I own. Would my credit be shot? Can I sue the previous owner for financial misrepresentation? This is definitely the biggest mistake of my life. What are my options if any.

https://forum.freeadvice.com/showthread.php?t=323424

What did your lawyer say?

 

[help-us-please]

My lawyer thinks that I have a good case, however he said to sit down with the previous owner to try and work something out before going to court. I did sit down with the previous owner and she and I agreed that I would not have to pay her the loan for 3 months, but that if my sales did not increase then we would sit down again and discuss. I am just trying to look ahead, that is why I am getting your advice. I also can not afford to call my lawyer any more than I need to at this point. Thanks.

 

[sdo1]

Mor eiNfo

Is your new business a corporation?

Did you personally guarantee the 55k loan to her or does your company owe her?

Did you do an assignment of the lease or is she still on the hook if you default?