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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 118734
Experience:  Attorney experienced in commercial litigation.
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Sold my company to a lawyer 5 years ago. They still have not

Customer Question

Sold my company to a lawyer 5 years ago. They still have not transferred the Line of Credit for the business over to new ownership. Bank still shows me as being Liable for the loan. I have not been an owner or stakeholder since the sell in February 2010. They are not worried about going to court because a retired lawyer is who I would be sueing. He has time and money and welcomes conflict. I would like to sue him locally in Orange County, California - my home and also where the business is located. He is Tom Zindler out of Westlake Village, L.A. They are still in business but I fear that one day they will fold and I will be held accountable for the very loan that represented the Accounts Payable when they bought the company. The total amount is $26,500 and the bank is not calling the loan in. It is just a matter of these guys going to the bank and taking my name off the loan but they refuse.
Any advice?
Submitted: 2 years ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If the sale included the sale of the line of credit as well, with you as surety, you are entitled to be replaced as surety/guarantor unless you agreed to the contrary as part of the terms of the sale. If the company has not substituted a new guarantor to remove your name from the line of credit and they are refusing to do so, they are in breach of contract. The proper venue to sue the business is where the business is located, so if it is located in Orange County, then the Superior Court there would be the proper jurisdiction for the suit for breach of contract, as this is a breach of contract, and you are seeking a court order to them to 1) pay off the line of credit and close the account, 2) alternatively to order the company to substitute a new guarantor.