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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31765
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I bought the company I worked for 5 years ago and the previous

Resolved Question:

I bought the company I worked for 5 years ago and the previous owner financed the purchase. He is now going into bankruptcy. What should I expect? Can I renegotiate terms with whoever takes over the loan?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.

You're going to have to obtain alternate financing to pay off the trustee of the person's bankruptcy to continue with your ownership of the property. It is possible to negotiate the debt, but you're going to have to get financing.

Customer: replied 7 years ago.
Just to make sure I understand: you're saying I'll have to payoff the balance of the loan even though there is a loan contract and the term of the contract is not over for another 5 years? It seems like I'm being punished for his going into bankruptcy, and I've been making the payments. Why wouldn't the loan/contract just transfer to a new owner?
Expert:  Roger replied 7 years ago.

You will have to finance the loan with another lender because your lender is bankrupt.


The loan is going to transfer to a new owner - your new lender.

Customer: replied 7 years ago.
What if they are not willing to negotiate terms I can afford? What if I say "no thanks" to a new loan? Will it affect my own credit rating?
Expert:  Roger replied 7 years ago.
Yes, but you'll lost your investment. It should not effect your credit rating.
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