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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10593
Experience:  Barrister 17 years experience
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I have set up a new business, I brought equipement from the

Customer Question

Hello, I have set up a new business, I brought equipement from the previous business owner of a factory and took out a new leese in the new company name on the same premises. Now that Im up and running one of my clients has said that the previous owner owed £1000 in an unpaid debt and is not paying a invoice, now that the goods have been delivered. This debt is from before my company was formed. Where do i legally stand?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.

1. Dear *****, the legal position is that you have no liability for the debts of the previous business. Once you incorporated a new company and started trading under a new company name from the premises, you are a different entity in law from any previous business that might have traded from the premises. Just because you might have purchased equipment from the previous business owner does not give rise to any liability on your part. The previous business is responsible for this debt of £1000. But you have no liability for it. In the eyes of the law, you are different entities entirely and there is no carry over of debts from the previous business. So direct this person to the previous business owner with whom he dealt.

Expert:  Buachaill replied 1 year ago.

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