Default on Promissory Note
My question involves business law in the state of: New York
We sold the business to somebody and there was a contract signed by us and the buyer.The buyer signed the promissory note for the remainder payment.We have a U CC lien against the business and all the assets and receivables of the business. We have signed a non-competence agreement with the buyer.
The debtor is in default.When we informed the buyer of the legal action if the buyer doesn't comply with the contract, the buyer on the contrary is threatening to drag the case longer by claiming that we violated our non-competence agreement with the buyer,which is not true, and the buyer is also saying as long as the case is going on the buyer doesn't have to pay us anything.The buyer is saying that the buyer will try to stretch the case as long as possible.
The buyer also gave us three continuous checks which got bounced because of NSF.
Please advise what should be our course of action and how long does the court take to settle such kind of cases?
What are the possibilities?
Thank you.
Re: Default on Promissory Note
If you don't want to call this person's bluff, it's not likely that things will get better and is quite likely that they will get worse.
It sounds like there's enough money involved that you should be retaining a lawyer to help you sue and exercise your rights to your security.
There's no way to answer "how long does the court take to settle such kind of cases", because each case is different. Your buyer may fold the moment he hears from your lawyer, or he may choose to drag things out and even go to trial.