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?
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.
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