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Previous owner of business had huge debt that wasnt paid off...

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Old Jun 27th, 2008, 11:55 AM     #1
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Confused Previous owner of business had huge debt that wasnt paid off...

I own a Charley's Steakery in Ventura, CA which I bought in October 06 from a previous owner. In Nov 07, the mall management contacted me (my store is located in a mall) with over $10k in debts (chemical balance fees and water fees to be exact). This debt had accumulated over the previous owners final year of ownership, however, she moved out of state, to Washington right after I purchased her store. I already went to small claims and they told me I would have to find her in Washington to settle this. I would like to see what you guys have to say about my situation and I hope to learn some useful information. Please help a hard working man avoid paying someone ELSE's $10k debt.
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Old Jun 27th, 2008, 12:30 PM     #2
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Default Re: Previous owner of business had huge debt that wasnt paid off...

How did you buy the store? Did you assume the debts? Did you buy assets, stock etc.?

What contract did you sign?

You may be able to avoid that debt...
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Old Jun 27th, 2008, 01:27 PM     #3
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Default Re: Previous owner of business had huge debt that wasnt paid off...

The store was paid for entirely in one sum. The debt was not brought up by the previous owner when purchased. I didn't find out about the debt until over a year later, when the mall management came to inform me about it. I did not buy any other assets other than the store property in the mall, no stocks or anything of the sort. I signed a basic individual contract handing the title to the store over to me.
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