Legal

Ask a Lawyer and Get Answers to Your Legal Questions

Ask a Lawyer,
Get an Answer ASAP!

Legal

I purchased a business with seller financing and am at risk…

Customer Question
I purchased a business...

I purchased a business with seller financing and am at risk of defaulting. The buyer has UCC liens on the equipment

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Illinois

Lawyer's Assistant: Has anything been filed or reported?

I don't believe he has actually filed the UCC liens but it's in the contract we signed that it will be done

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

That I would love to cut my losses from the down payment of the business and happy for the previous owner to take all of the assets back, I just want to know if it will affect my personal assets

Submitted: 2 months ago.Category: Legal
Show More
Show Less
Ask Your Own Legal Question
Answered in 5 minutes by:
12/15/2017
Lawyer: Loren, Attorney replied 2 months ago
Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 36,371
Experience: 30 years experience representing clients.
Verified
Thank you for using JA. I am Loren, an Illinois licensed attorney for over 30 yrs., and I am here to help.
I am a certified expert on JustAnswer since 2009, with nearly 100% in 5 star ratings. So, we should be able to work through your problem.
I appreciate your patience as I review your question. I will post my response shortly.
This is general information and no attorney client relationship is established.
The site may ask you if you wish to speak by phone for an extra charge. Many find the phone call to be the easiest and fastest way to get the information they need without posting on a public forum. I am also happy to continue online.
There may be a slight delay in my replies as I am assisting other JA customers also. I will reply to your follow up questions.
WHILE WE ARE CHATTING DO NOT CLICK ON THE BUTTON TO REQUEST A SECOND OPINION. IT WILL LOCK ME OUT OF THE CHAT AND PREVENT ME FROM REPLYING TO YOU.
Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago
Did you sign the contract personally or as an entity, such as a corporation or LLC?
Did you personally guaranty the purchase obligations?
Ask Your Own Legal Question
Customer reply replied 2 months ago
I signed as one business buying another business, but he had both my partner and I sign the documents. On the contract, it only shows the UCCliens as collateral, but it worries me that I don't fully understand why both my partner and I had to sign
Lawyer: Loren, Attorney replied 2 months ago

Thank you for the additional information.

If you, as buyer, only signed in your capacity as a corporate officer or LLC manager then you have no personal exposure and your seller may only seek satisfaction from the assets held by entity, not you, in the event they sue for default and obtain a judgment.

However, if you signed a personal guaranty then, even if the buyer is a separate entity, you can be personally liable for breach and your assets would be vulnerable in the event a judgment was granted.

Ask Your Own Legal Question
Customer reply replied 2 months ago
Would there be a separate agreement or contract specifically for a personal guarantee? I just wasn't sure if simply my signature and my wife's signature was a personal guarantee. The seller was pretty adamant about my wife's signature being on the documents as well, and I don't understand that if no personal assets can be retrieved anyhow.
Customer reply replied 2 months ago
If I want to give back the assets, does it even have to go to court for a judgement?
Lawyer: Loren, Attorney replied 2 months ago

You should probably take a closer look now at the documents you and your partner signed personally to determine your exposure to liability..

Yes, a personal guaranty would likely be a separate document. If you and your wife were both required to sign then it sounds as if you signed a guaranty.

If you default then the seller would need to go to court and get a judgment against you before he could attach your personal assets or garnish your accounts.

Hopefully, you could negotiate a settlement before that happens to obtain a release and cut off further liability. That may be the turnover of the collateral, if it satisfies the liability. It will, in all likelihood, be negotiated. Very few claims actually go to trial and judgment.

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

If you reach a negotiated settlement, make sure it is in writing and that you obtain a signed release of liability, both personally and for whatever entity is the borrower, so that further liability is cut off and it is enforceable in court.

You may want to retain a local attorney to help you negotiate the exit. It is not required, but it will be helpful and is recommended.

If you need assistance finding local counsel try Martindale Hubble (site rules prohibit us from referring specific attorneys). Many attorneys, themselves, use this site to locate attorneys outside their jurisdiction or expertise:

http://www.martindale.com/Find-Lawyers-and-Law-Firms.aspx

It is a huge worldwide database searchable by location and specialty. The attorneys are peer rated. So, they represent the top of the profession.

If (and only if) you are completely satisfied that your question is answered, please remember to leave a favorable rating (click 5 stars in the rating section on this page). It is the only way that I am credited by JustAnswer for answering your question.

There is no additional charge to you for rating me favorably.

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

Are you still online with me?

Ask Your Own Legal Question
Customer reply replied 2 months ago
I'm looking at the contract and next to our names it says "individually". So it seems that we did sign as individuals
Lawyer: Loren, Attorney replied 2 months ago

Yes, it sounds as if you are personally liable for the purchase obligations.

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

Did you have further questions? Have I answered your question?

Ask Your Own Legal Question
Customer reply replied 2 months ago
i do have further questions but am not available for a call right now. Can I schedule a call for you later?
Lawyer: Loren, Attorney replied 2 months ago

of course.

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

If you have no further questions please remember to rate my service (5 Stars) so that I am credited by JA for answering your question and also so that I may close the question.

There is no additional charge to you for a 5 star rating of my service.

Thank you!

Ask Your Own Legal Question
Customer reply replied 2 months ago
Hi Loren, can I please get on a call with you now?
Customer reply replied 2 months ago
How do I provide you my phone number?
Lawyer: Loren, Attorney replied 2 months ago

The premium service is showing a payment failure.

It may have triggered a fraud alert on your card, which you need to respond to with the bank.

Ask Your Own Legal Question
Customer reply replied 2 months ago
Okay, can you resend the offer please?
Customer reply replied 2 months ago
Just resubmitted payment, does it show that it went through on your end?
Lawyer: Loren, Attorney replied 2 months ago

I can not from my end, after making the initial offer. You need to contact customer service or make an offer from your side.

Ask Your Own Legal Question
Customer reply replied 2 months ago
I was able to submit payment again on my end, can you see if it went through on your end?
Lawyer: Loren, Attorney replied 2 months ago

I tried to make another offer and the site will not let me. I am not an employee of JA and I can not see your account.

You will need to contact customer care to straighten this out and then we can speak.

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

Are you still online with me?

Ask Your Own Legal Question
Lawyer: Loren, Attorney replied 2 months ago

If you have no further questions please remember to rate my service (5 Stars) so that I am credited by JA for answering your question and also so that I may close the question.

There is no additional charge to you for a 5 star rating of my service.

Thank you!

Ask Your Own Legal Question
Was this answer helpful?
Ask Loren Your Own Question
Loren
Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 36,371
36,371 Satisfied Customers
Experience: 30 years experience representing clients.

Loren is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

8,775 satisfied customers

JD, BBA Over 25 years legal and business experience.

Ely

Ely

Counselor at Law

24,353 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

20,727 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

42,358 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo J. Senmartin, Esq.

Guillermo J. Senmartin, Esq.

Attorney

292 satisfied customers

7+ years of experience handling various legal matters.

< Previous | Next >

Related Legal Questions
Internet service provider contract. If the contract just
internet service provider contract. If the contract just started or is about to start, can I back out of the contract. … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
18,663 satisfied customers
If an owner of a company is also an officer and employee and
If an owner of a company is also an officer and employee and the company pays a portion of it's employees health insurance does the owner pay the full amount of the health insurance premium the same a… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,301 satisfied customers
ONE YEAR CONTRACT AS EMPLOYEE WORK FOR CONTRACTS THAT ARE
ONE YEAR CONTRACT AS EMPLOYEE WORK FOR CONTRACTS THAT ARE SIGNED FOR YEARLY IN KENYA … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
42,358 satisfied customers
I am a contract employee at a nursing facility. I provide
I am a contract employee at a nursing facility. I provide hair care for residents. Is there a time frame from which i should be paid for my services? I have yet to be paid for work performed in Decemb… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
8,305 satisfied customers
I have signed a contract employee agreement that contains
I have signed a contract employee agreement that contains Non-Complete covenants. I need help understanding the limits of these covenants and whether or not a business venture I am considering may be … read more
Gerald, Esq
Gerald, Esq
Juris Doctor
3,687 satisfied customers
Can I legally write a contract for my employee that states,
Can I legally write a contract for my employee that states, any paid company courses must be only used to benefit our company. Basically you cannot use anything we pay for outside the company for a ce… read more
Dwayne B.
Dwayne B.
Juris Doctor
28,766 satisfied customers
Is an employer required to provide ex-employees copies of
Is an employer required to provide ex-employees copies of their timesheets after the employee is terminated? … read more
LegalGems
LegalGems
Juris Doctorate
11,042 satisfied customers
I'm a contract employee but on the website as sales
Hi Pearl I'm a contract employee but on the website as sales director, and am supposed to participate in meetings. Can I refuse the meetings if I'm a contract worker? … read more
Damien Bosco
Damien Bosco
3,676 satisfied customers
We are trying to set up a premium ssl certificate to our
Hello, we are trying to set up a premium ssl certificate to our website dtfspro.com. GoDaddy requested a Professional Opinion Letter. Could you please fill it out for us? I have a letter template … read more
Lori
Lori
Juris Doctor
634 satisfied customers
Is an employee handbook a contract in Oklahoma? I am not
I am not sure to say "at will" since I don't understand what that means; however, I was full-time. Is this something that yu are asking me to kook up in the employee handbook? … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
8,305 satisfied customers
I worked as a contract employee (GRA inc) for about a year
I worked as a contract employee (GRA inc) for about a year and a half. And our contract was with the Defense Health Agency. So basically I'm a contractor working for a federal government agency. I und… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
8,305 satisfied customers
I am a 1099 contract employee living on NC. I am contracted
I am a 1099 contract employee living on NC. I am contracted with a publishing company headquartered in Chicago. There are a lot of issues with this company. However, the most recent has caused me some… read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
8,305 satisfied customers
HO2 and Wind policies in place and premiums paid with Trust
HO2 and Wind policies in place and premiums paid with Trust as named insured. Deed recorded in FL naming three co-partners/equal shares. Insurance carriers require new application for each policy. How… read more
INFOLAWYER
INFOLAWYER
Attorney
Doctoral Degree
20,727 satisfied customers
My employer did not take my insurance premium out of my
My employer did not take my insurance premium out of my check when I started working there. They were to take $300 every two week or $600 a month. I will admit I didn't look at my check close enough. … read more
Olivia Kent
Olivia Kent
Managing Partner
Doctoral Degree
2,238 satisfied customers
I have been with a premium auditing company for 3 years, the
I have been with a premium auditing company for 3 years, the first 6 monts or so was training pay, then went to production, the supervisor did not explain how to get paid for certain time on jobs. At … read more
Damien Bosco
Damien Bosco
3,676 satisfied customers
The hospital I work at of appx 350 -500 employees contracted
The hospital I work at of appx 350 -500 employees contracted to build a new rehab hosp on the property. This caused 300+ employee to lose their hospital parking and relocated us to a field a mile and … read more
LegalPro54
LegalPro54
Doctoral Degree
1,258 satisfied customers
My employer just told me I have been getting a premium
My employer just told me I have been getting a premium overpayment since 2008. They are adjusting my salary which amounts to about $400 per month. Is this legal? What are my options … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
42,358 satisfied customers
An employee of mine signed a contract when she is neither
An employee of mine signed a contract when she is neither authorised to do so or has the authority. Only one person may sign contracts and that is the Managing Director.The contract is almost a scam i… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,066 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x