Consumer Law, Warranties breach of agreement

[biggtee252]

A friend of mine started an LLC ( trucking company ) with a freind. Upon agreement of both parties, one partner obtained a 2nd mortgage for the buusiness. The other partner later sold out the company and since, has not repaid any debt. The agreement was oral. Both have made individual payments in finance office toward loan before expiration of business. Can anything be done to enforce this repayment

 

[jharris352]

When you say he, "sold out the company." Why didn't the debt go with the company? I doubt he can enforce it if it was never formalized as part of the company/personal debt.

 

[biggtee252]

the money was used to purchase a truck. He sold the truck and kept that money as well.

 

[jharris352]

I would sue him for the money he made on the truck. That should have gone to pay down the loan. Then I would sue him for his half of the remaining balance of the loan. You are going to need as much evidence as possible that the money on the second mortgage went to the business and that it was being treated as a business debt. Then anticipate that he is going to say that he put money into the business too, though he is going to have to prove it. There is bound to be a papertrail that will show that you used the money to purchase the truck.