Closing out a business bank account and receiving checks with the business name

[jeromedawg]

Hey all,

I was just curious how you deal with check payments that come in that are address to a business in the case that the business was sold and the business account(s) are closed. My in-laws just sold their business and we are wanting to help them close their business account soon but we were curious how to deal with any future checks (refund checks in this case) that they might be expecting where the name of the business would be on the check rather than their actual names (btw: this was a sole proprietorship).


TIA!

[Proud Foot]

I would suggest talking with a lawyer who works with business transactions such as the sale of your in-laws business. Since they sold the business I would assume that the rights to any refunds would belong to the new owners. If this is the case then the checks should be passed along to the new owners.

[jeromedawg]

I would suggest talking with a lawyer who works with business transactions such as the sale of your in-laws business. Since they sold the business I would assume that the rights to any refunds would belong to the new owners. If this is the case then the checks should be passed along to the new owners.

The refund checks are for past invoices where my in-laws in essence 'pre-paid' for certain services. So the refund checks are basically just refunding the pro-rated amount back. The new owner has paid for her portion and my in-laws have paid their portion and more, effectively double-paying the company - this is what they're seeking the refunds for. My wife has already worked out most of the remittance so it's a matter of just waiting for the checks to arrive. However, we were looking to close their account asap due to other pressing matters related to a fraudulent activity from credit card lease scammers.