I am seeking during shopping a commercial operation from my employer. He has a k line of credit which he has defaulted upon given we instituted a traffic to buy a business. we answer a phones to a business, as well as have gotten badgering phone calls from a debt collector. This is how we know he’s defaulted.
If we go forward as well as squeeze a business, am we additionally presumption shortcoming for a debts?
If we have any turn of expertise, do we have recommendation upon how to proceed?
If you are truly buying the "business" then yes, you bought the debts with it.
Sometimes, people just buy the "assets" and start a new business. This may be illegal if the assets were pledged as security for the loans.
You left out the most important part: how is the business organized? Sole proprietorship. Partnership, s-corp, c-corp, LLC, something else?
In a small business, the owner is frequently required to sign to personally guarantee the debts, or the banks won’t make the loan. Your buying the business won’t let him off the hook unless the creditors agree, in which case they will probably make you sign in his place.
Maybe this business isn’t as profitable as you thought and you would be better off starting your own from scratch.
If you are not working with an attorney to help you structure this deal to make sure you are covered here you are making a HUGE mistake. If a line of credit is overdue you have no way of knowing what else might not have been paid.
Get an attorney NOW.