If I’m purchasing an existing business that sells gift cards and it has $20,000 in outstanding debt, what am I liable for once I purchase the business?

The seller is not willing to leave any money to cover even half of the balance. I am changing the name of the business once I purchase it.

Asked on September 26, 2014 under Business Law, Illinois

Answers:

Shawn Jackson / The Jackson Law Firm, P.C.

Answered 6 years ago | Contributor

Well, there are a variety of legal and equitable arguements as to how and why you as the "purchaser" could be stuck with the gift card obligations. As you might imagine, you [with an attorney of your choice] seek to reconcile this issue so that the purchase of the business does not cost you an extra $20,000.00. Yes, there are a number of ways to address this issue if the Seller elects to have that obligation be part of the purchase price...and not have you to take on that responsibility.


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