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Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 7310
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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I purchased a business (equipment and name of business) from

Customer Question

I purchased a business (equipment and name of business) from previous owner with a note. I put 20,000 down and paying 1307.00 a month for 5 years. I have been paying for 1 year. I have never made or came close to making the income he showed me he was making with the business. My business makes between 20,000 to 25,000 a month. He claimed to make between 30,000 and 35,000 a month. In the last year I have had to repair the sandwich prep station twice then went ahead and bought a new prep sandwich station ($4000) the third time it broke down (I believe 3 to 4 months after purchasing the business), repair one of the fryers twice, repair the ice maker a week after we purchased business, repaired one of the freezers, I now have another broken freezer.
What I would like to do is change the name of the business and not have to continue paying the note. Can I do this or can I close the business and re-open with another name? What are my options?? Help!!!!!!
Submitted: 1 year ago.
Category: Legal
Expert:  Irwin Law replied 1 year ago.

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.

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