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Richard
Richard, Attorney
Category: Legal
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Experience:  Attorney with 29 years of experience.
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I sold my business last July on a 24-month payment plan (promissory

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I sold my business last July on a 24-month payment plan (promissory note), but now the buyer is falling behind in payments. It's a client-based, service business. What legal recourse can I take if the buyer continues to fall behind in payments?

Welcome to JA! I will do my best to help you. Please be aware, however, that I am only able to provide information and cannot offer specific advice!

 

Good afternoon. Along with the note, did the buyer also sign either a Security Agreement or a Deed of Trust giving you a security interest or lien on particular assets as collateral for the note?

Customer: replied 5 years ago.
No security agreent or deed of trust.

Thanks. In that case, if the buyer will not pay the note voluntarily, a seller will have to file a suit against the buyer to get a judgment. Once the suit is filed and a judgment is awarded the seller, then the seller becomes a judgment creditor and can have the sheriff serve a summons on the buyer for a debtor examination. That forces the buyer to meet the judgment creditor in court and answer questions under oath about all the buyer's assets. After the that information is obtained, the judgment creditor has the power to attach bank accounts, and/or have the sheriff seize other property of the buyer to satisfy the judgment.

 

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