What to do if I’m being held responsible for a previous business’s liabilities?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if I’m being held responsible for a previous business’s liabilities?

I purchased some store fixtures and inventories from a retail store that was closing down and opened a store of my own at another location under a same business name. A county treasurer showed up at my store one day and told me that the person owed the county some property taxes and I have to pay them since I pur chased equipments that had liened by the county. Would I have to pay?

Asked on June 11, 2015 under Business Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, if that equipment had a lien on it from the county, you'd have to pay the taxes; the lien travels with the equipment and is an obligation of the person owning it. However, you could in turn sue the seller because 1) he was under a duty to disclose this to you, and a failure to disclose may be fraud; and 2) he also had a duty to pay the lien from the proceeds of the price you paid him for the equipment--he could not just take the money and run.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption