when a business sells to a new owner what happens to unpaid invoices owed to the previous owner, can they collect or are they closed.
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when a business sells to a new owner what happens to unpaid invoices owed to the previous owner, can they collect or are they closed.
Asked on May 14, 2009 under Business Law, Indiana
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
When a business sells, the new owner generally takes over the prior owner's accounts receivables and liabilities (i.e. bills). In this case, you are stepping into the shoes of the prior owner and may go after the unpaid invoices. The money you collect goes to the current owner. If the purchase and sale agreement says something differently, then the agreement controls. Otherwise, the new owner may keep the money he collects on the outstanding accounts.
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