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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 33938
Experience:  Began practicing law in 1992
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I sold my business for $90,000.00 the new owner made

Customer Question

I sold my business for $90,000.00 the new owner made payments for about 4 months then claimed bankruptcy. Four years past and then this person agreed to pay me $30,000 in payments of $200.00 per month. This agreement was written out in a contract signed by him, me and witnessed by my wife. He payed the $200 a month for nearly two years on time then as of eight months ago stopped paying and I have not been able to contact him and he won't return my calls. My question is since he signed into this new contract with me long after the bankruptcy and since he's payed some installments is the contract enforceable and if so what do I do next. Thank you for any assistance you may be able to offer.
Submitted: 2 years ago.
Category: Legal
Expert:  Dwayne B. replied 2 years ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts.

I'm not sure what you are asking. Are you asking if the bankruptcy affects the contract?

Customer: replied 2 years ago.
does the bankruptcy affect the second contract for $30,000, which was signed after the bankruptcy.
Expert:  Dwayne B. replied 2 years ago.

If he is no longer in bankruptcy at all then the second contract shouldn't be affected. However, if he is still "in the bankruptcy" and subject to the trustee then he wouldn't have been able to enter into the contract without the permission of the trustee and so it wouldn't be valid until the trustee (and the court) approved it.

If he is in the bankruptcy then the best option is to hire an attorney to go to the bankruptcy court and get the contract approved or else have the court void the contract entirely and relieve you of any obligations under it as well as clearing the title to the property at issue.