SOLD BUSINESS NOW WANT TO WRITE LETTER TO CREDITORS THAT I AM NO LONGER RESPONSIBLE FOR DEBTS. WHAT IS FORMAT

We wish to suggest the creditors/vendors which you have been no longer compared with the commercial operation as well as have been not obliged for the debts as of sell date. Is there the sold minute template which would have the diction you need?

{ 6 comments… read them below or add one }

FckOSU July 27, 2010 at 5:06 am

Have your lawyer write it up. It should only cost you a couple hundred bucks at most and it will be well worth it if any problems arise.

beez July 27, 2010 at 5:42 am

In addition to the letters, it would be smart to post an ad in the local paper declaring you are no long responsible for any debts of _________company.

bob67cam July 27, 2010 at 5:48 am

im no expert on this however as i know of it..since u sold the bussiness they can come after you for everything they can…debt doesnt get thrown at the new owner without a contract signed by the new owner to take over your debt…u might be screwed

zeb6219 July 27, 2010 at 6:28 am

If you have outstanding finiancial committments to any vendors that have not been reconciled before the sale of your business, and there is no provision in any contract that both you and the buyer agreed to, then you are still responsible to satisfy those outstanding debts.

Jeff T July 27, 2010 at 6:33 am

Like the other few people said, if it didn’t state in your contract that the new owner is responible for the debt then you are still held responible to pay the outstanding debts. I would get with a lawyer and see what they have to say and go from there. If you did state this in the contract then your lawyer should be able to put togeather a letter to send to all your old creditors. For your sake, I hope it was in the contract that the new owner has to take care of any business debts otherwise you are responsible to pay them.

Al Mac Wheel July 27, 2010 at 6:50 am

I have seen several variations. I think you may wish to consult with the legal representation you used in the transfer of the business.

Basically you want to send all places that you bought stuff from, all places you leased stuff from, all places you had licenses from. Inform them of the sale of the business, that you no longer are responsible for any debts as of the sale date, whether the liabilities assets were taken over by the new owners, how to contact them,

Be aware that there is a statute of limitations on some of this. If a few years later the new owners find out about some debt that was not made clear to them in the sale, you could still be held legally accountable for that debt that the new owners were not aware of, even if they bought all assets and liabilities.

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