Is the debt collector allowed to take a present owner's property if the debt was created from a previous owner of the business? The previous owner pawned the shop in order to pay off debt and sold the store to someone else.
Answer
It depends. You need to have a business attorney review the asset purchase agreement to see whether the new business is liable for debts of the old business. However, you do not indicate if this was secured or unsecured debt. If there was a security interest in the property acquired by the new business, the new business may be liable. However, see an attorney about this.
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