What can we do to take back a business that we financed if the buyer has stopped making payments?

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What can we do to take back a business that we financed if the buyer has stopped making payments?

Buyer stopped making payments a few months back. We have promissory note and bill of sale. The buyer is now in the process of a Chapter 13 bankrupcty. However we were not placed on the mailing list of debtors. We approached buyer in a peacful manner asking for the business back. He than called the police and locked us out the the establishment. Police advised us to file a legal suit.

Asked on March 20, 2012 under Business Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unless you have a secured interest in the business that you sold, you unfortunately cannot take back the business that you are writing about. If you are owed money, you need to immediately contact an attorney that represents creditors in bankruptcy matters and submit your creditor's claim to the court as to the chapter 13 bankruptcy that you are writing about.

Once done, you need to let the bankruptcy court handle the process.


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