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Would filing bankruptcy relief me froma the debt i claimed to pay to my ex partner in a buy out contract?

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#1
I own a restaurant, signed a contract to buy out my business partner and taje over all business debts occrued , right after making couple if payments to all loans and business partner, the business took a big hit, i am not able to make these payments anymore. I am couple of months behind on all these payments. I am thinking of filing bankruptcy, would that relief me from the debt i saud ill pay under business and the loans he took under his name for the business? Based on the contract i signed with him during the buy out. He is suing me now for not paying him, I have 30k irs debt and about 40k in total for business loans and my ex partners loans. What are my options? Would bankruptcy relief me from the buy out contact? I already consulted with many attorneys theyre driving me crazy bcz each one gives a different advice of what I should do. Please advise of what my options are.
 


LdiJ

Senior Member
#4
I own a restaurant, signed a contract to buy out my business partner and taje over all business debts occrued , right after making couple if payments to all loans and business partner, the business took a big hit, i am not able to make these payments anymore. I am couple of months behind on all these payments. I am thinking of filing bankruptcy, would that relief me from the debt i saud ill pay under business and the loans he took under his name for the business? Based on the contract i signed with him during the buy out. He is suing me now for not paying him, I have 30k irs debt and about 40k in total for business loans and my ex partners loans. What are my options? Would bankruptcy relief me from the buy out contact? I already consulted with many attorneys theyre driving me crazy bcz each one gives a different advice of what I should do. Please advise of what my options are.
You need a face to face consult with a bankruptcy attorney.
 
#5
In general, if this is simply a money issue (not an attempt to regain ownership of the business or its assets or an allegation of misrepresentation) then a bk should end the problem with your partner. Unfortunately, in the process of filing bk you may lose the restaurant, especially if you file a Chapter 7. If you no longer want to operate then the potential loss is probably not a big deal to you.

There are too many question in a case such as yours. As much as I hate writing this, this forum (or any others on the Internet) is not going to be of any real assistance. Just for example some of the questions that need to be answered before advice relating to bk can be given are:

Is the business run under a LLC, Inc or sole proprietorship?
What are the terms of the buy-sell agreement?
Did your ex-partner file a UCC-1 to secure payment under the buy-sell agreement?
How about the commercial lease? Is it long term? Did you personally guarantee it or are you individually the tenant?
Is there a liquor license? Who owns the liquor license? Is the liquor license a series 6 or 12? Was the license used as collateral for some loan?
What about TPT taxes and 940/941s - are they current?

And the list of questions goes on and on, including all of the debt that is your personal debt (credit cards, car loans, mortgage, signature loans, income taxes, medical bills etc.).

I have no doubt a number of attnys you have consulted with gave you a look as if to say "I don't know". Many of the ones that do major advertising are mills. Do not go to a mill. You need to keep searching until you find the right attny. Check with friends or family. Even check with other restaurant owners for referrals. What about contacting a local restaurant trade network?

Des.
 
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