Springfield, MO asked in Bankruptcy and Business Law for Missouri

Q: I owner financed a salon from the previous owner. She filed bankruptcy and I was told to continue making payments to a

Trustee. Wouldn't this negate our purchase agreement with her? Should I still have to pay?

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2 Lawyer Answers
Jennifer Sheila Kornblum
Jennifer Sheila Kornblum
  • Springfield, MO
  • Licensed in Missouri

A: Whether the sellers bankruptcy is a breach of the contract to purchase will depend on the contract language. Generally, however, the bankruptcy trustee will stand in the shoes of the seller in enforcing the contract and unless bankruptcy is specifically addressed as a breach in the contract language it will remain enforceable. You should have an attorney review the contract to be sure.

Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: Yes. You still have to pay the Trustee. You should contact an attorney to review, but the contract is not negated simply by filing bankruptcy.

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