Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.
You can enter into an agreement to purchase only the company name and assets only, leaving the business' debt separate from your purchase.
This is possible, but I would highly recommend that you hire a local business law attorney to structure the deal so that you only get assets and the name - and not the debt.
If the business files bankruptcy, you will have to get all of this approved through the bankruptcy court.
I'm sorry I seen you answered my question about not being licensed in Idaho and when I clicked on it it went away.
So I didn't get to see your answer
Also what about warrantees that were given through the company, would I have to honor those?
Yes, this answer is applicable in your state. This is simply a matter of contract between you and the business if you decide to make the purchase.
Warranties are another issue that you will have to negotiate. If you are buying existing contracts, you're probably going to be asked to provide warranties for any work done prior to purchase.
If so, you just need the seller to issue an indemnity agreement that says you'll honor the warranties, but if you are sued or if there is liability for something done before your purchase that creates liability, the business' insurance or the business owner will indemnify, defend and hold you and your new business harmless for any such claims.
Again, a good local business law attorney can structure this where you're legally protected.