I Sold my business in 2011, for a very small amount. The buyer signed a promissory note, and shortly after the purchase stopped making payments. I filed a small claim to try to recoup some of my money, but now the person who owes me money is claiming they will sell the business, collect the money, and file bankruptcy to avoid having to make good on our promissory note. Can they do this? What options do I have?
A contract is an agreement voluntarily entered into by two or more parties that is intended to create legal obligations between them.
Business debt has different implications depending on how the business is structured. In some cases, you may be personally liable.