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If you discontinue paying the note the seller can sue you for the balance. If he holds a security lean against the business that he sold, he may, but doesn't have to repossess the equipment and the business name. He probably doesn't want the business back, because it isn't worth what he sold it to you for. That leads to another option, which is to renegotiate the deal based on the reality of what the business actually makes. You can claim that the business was misrepresented in the negotiations and that you are entitled to rescind the deal, and give it back to him and recover your money down payment. To back up that threat, you may also be in a position to file bankruptcy and walk away from the whole mess. All in all, it would seem that the best option for both you and the seller is to renegotiate, so that you will have enough incentive and income to make the business work and keep going forward with it. I wish you the best of luck in getting this matter resolved in your favor.