liable to pay off debt???

shotter

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Hi peeps in a bit of bother, was wondering if any peeps can give some advice.....will start from the beginning.


MR Red ran a Mobile Shop known as "Mobile R US"

In February 2007 Mr Red signed up with the telephone company "Eurotel". The contract was for 12 months and Eurotel provided the phone line, calls and broadband. The bill was settled on a monthly basis.

In May 2007 Mr Red changed his company from "Mobile R US" to "Mobile Care UK".
According to Mr Red, it was not just a name change, it was a new business with a new bank account. Mobile R us did not exsist anymore.

After a couple of months Mr Red got upset with the high amount of billing he was receiving every month from Eurotel, so in August 2007 without notifying Eurotel, Mr Red signed up with another telephone firm "Axis Telecom" .

From August 2007 Axis Telecom took over the phone line and broadband. Once Eurotel were made aware, they understandably wanted the outstanding bill paid off along with the remainder of the months that were agreed on the contract.

Mr Red took no notice insisting that the company Mobile R US has shut shop and did not exsist anymore.
Eurotel were having none of it, and were sticking to their guns that it is only a name change.

In september 2007 i joined rank with Mr Red as a employee.
Around November 2007 the business was made into a limited company by Mr Red. So now it is known as Mobile Care Uk Ltd.

Due to the success of the business, i bought the business of Mr Red in February 2008.
The business is running on my name with the business account also on my name.

In March i received a county court order or something along those lines stating that Eurotel have made a claim for their losses against my company.
I challenged this order, stating that Mr Red was the owner of the business at that time and had nothing to do with me.

Last week i got a letter from a solicitor firm stating that i have taken over the business from Mr Red and i will have to pay off the outstanding invoice + interest along with the solicitor fees.

Am i liable to pay off the outstanding invoice????
 

Rs2k_Rider

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think so mate, unless stated you buy debts/credits with business ?

Out of intrest though, can you unlock 2 E65's on orange for me lol ?
 

karym6

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MR Red is liable.

He was the sole owner when the debt was incurred, and if memory serves this doesnt count for shit if he turns the business into a ltd.

Do you have a sollicitor yet?
 

shotter

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MR Red is liable.

He was the sole owner when the debt was incurred, and if memory serves this doesnt count for shit if he turns the business into a ltd.

Do you have a sollicitor yet?

dont have a solicitor as yet.....will make arrangements to pay one a visit.

So Mr Red changing the business to a limited company means that the debt is still active?????.....ma a bit confused now
 

nara

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You can't get rid of a debt just by changing the name and opening a new account, so it looks as if Mr. Red was liable at the time he sold the business to you. Whether or not you are liable depends on the conditions of the sale. See a solicitor and bring along a copy of the sale contract.
 

P33 RRV

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you could have got rid of the debt if the 1st company was ltd, but as a sole trader the person is liable for any debts occured :-(
 
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