closed business/ purchase payment agreement

This is a discussion on closed business/ purchase payment agreement within the Business and Financial Law Questions forums, part of the Legal Questions & Answers Forum category; My daughter bought a dance studio from her former teacher. It was a private deal for 3 years of monthly payments between her and the former owner. It did not ...

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  1. #1
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    closed business/ purchase payment agreement

    My daughter bought a dance studio from her former teacher. It was a private deal for 3 years of monthly payments between her and the former owner. It did not do well and closed. She lost her business, her house, her car and has a mountain of debt. She plans to file for bankruptcy when she can afford it. I have been paying the former teacher each month because morally I felt it was the right thing to do. In today's economy I am finding it very difficult to come up with this money each month. Its almost $1000 monthly. Now she wants a late fee if I pay late. My question is do I owe her anything? I was trying to do the right thing but I feel it isn't my bill, I never signed anything and I want to make sure I'm right - Since I've been paying does that set up precedence or is it still my daughter's bill and I do not owe anything? Please advise. I want to do the right thing.


  2. #2
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    Unless you signed an agreement to pay or were part owner of the business, you have no obligation to pay her. I suggest instead you invest your money and effort assisting your daughter to file bankruptcy, before she finds gainful employment and is saddled with all this debt.

  3. #3
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    Could the former owner sue her privately if she defaults in payment and files for bankruptcy?

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    If she files for bankruptcy, the debt she owes would most likely be discharged under bankruptcy so there would be nothing for the former owner to sue her over.
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