If so, if you buy only their assets are you responsible for their other debts.
2006-06-30 07:40:02 · 8 answers · asked by NYDAWG231 1 in Politics & Government ➔ Law & Ethics
The thing is the company is bought but a judgement was placed on the company (the old company) after the sale. The judgement creditor was a state entity and the summons and complaint were file before the sale.
2006-06-30 08:19:28 · update #1
If you are buying just the company's assets then (perhaps) no. However, if you are buying the whole company then the debts usually come with it. That is something you would want to be sure you have straight from the beginning.
You don't say anything about the company you're buying, but if it on property and you're obtaining the real estate as part of the deal make sure you have the land checked for contamination as part of disclosure, if not you also buy the liability for that as well.
If you're not sure check with a lawyer before signing any contracts.
2006-06-30 08:00:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
your question is rather vague. Is the company in receivership or undergoing bankruptcy? Is the assets of the company such as machinery and equipment leased or being purchased through loans? If monies are owed and you are attempting to buy the business you may find out that you will be witnessing an auction as the creditors attempt to collect is due them. If you continue to run the business you must separate yourself from past business and make it clear that the former business is responsible for all past debts. Anything [assets] that is not on the books as paid in full is not the property of the former company to sell. As far as terms of sale you better have an attorney look at it as if there is a bankruptcy filing the court will also be involved on the terms.
2006-06-30 14:57:50 · answer #2 · answered by pecker_head_bill 4 · 0⤊ 0⤋
No. Typically when you buy a company's business assets, the seller remains reponsible for the debt and it is often paid out of the proceeds of the sale (just like when you sell a house the O/S balance on the mortgage is repaid out the sale proceeds).
However, it must be stipulated this way in the asset purchase agmt so that there is no confusion down the road. And it can be a condition to the sale the seller pay the J/L out of its sale proceeds and the lien be released.
2006-06-30 15:42:58 · answer #3 · answered by boston857 5 · 0⤊ 0⤋
That is negotiated in the purchase with regard to the assumption of debt. For the most part you acquire the balance sheet of the other company.
2006-06-30 14:43:42 · answer #4 · answered by Bamski 3 · 0⤊ 0⤋
It's all negotiable. You can assume both if that is what you want to do, or assume neither. I bought a company some years back, negotiated for and acquired the receivables, but let the seller keep the payables.
2006-06-30 14:46:33 · answer #5 · answered by kathy059 6 · 0⤊ 0⤋
Yes if you buy the whole company. Assets? They are can be everything. If you only buy their cars/ transportations, of course you are not responsible for thir debts.
2006-06-30 14:44:51 · answer #6 · answered by Nutty Prof 3 · 0⤊ 0⤋
Yes, unless it is stipulated in the sales contract that all debts must be paid prior to sale.
2006-06-30 14:43:51 · answer #7 · answered by snoweagleltd 4 · 0⤊ 0⤋
Terms of the purchase. Usually you have to take everything.
But this is spelled out in the terms of the deal.
2006-06-30 14:43:13 · answer #8 · answered by BonesofaTeacher 7 · 0⤊ 0⤋