If Isold my businessbuy the buyer is not making payments, can I place a lien on their property?
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If Isold my businessbuy the buyer is not making payments, can I place a lien on their property?
I sold my hair salon business to 2 women 5 years ago. There was a payment plan to pay me for the business. Up until 2 years ago all payments were being made on time. However, since then I am only receiving 1/2 of the payments from 1 of the women. Can I place a lien on the property of the women not making the other 1/2 of the payments?
Asked on November 16, 2011 under Bankruptcy Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not you can place a lien on the property of the owner of the business that was formerly owned by you will most likely have to wait until after you file suit and hopefully obtain a judgment for lack of payment.
As part of the sales transaction, you should have received a promissory note from the buyer of your former business with a security agreement recorded upon the buyer's property as security for future payments. The only way I see you being allowed a lien at this time is if the purchase agreement allows for such or your state has a statute allowing for a pre-judgment writ of attachment in the business context.
I suggest that you consult with a business attorney about your situation.
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