My husband had a mobile detailing business, which included a trailer with hitch, water tank, pressure washer, vacuum, generator, and various other cleaning supplies for detailing vehicles. He tried for a couple of months to sell the business on Craig's list, but was unsuccessful in doing so. A friend of his has been wanting to buy the business for about a year, but could not afford to pay the entire asking price, which was $3,300. He asked my husband if he could make a down payment of $400 upon delivery of the trailer, and $300 minimum every month thereafter. He stated that he would attempt to pay the trailer off within six months. He was planning to use the trailer for his wife's cleaning business.

My husband and I were reluctant to take monthly payments because we were worried that he would not follow through with paying us. However, since we had been unsuccessful in selling the business, and we really needed the money, we finally agreed to sell the friend the business and allow him to make monthly payments of at least $300 ($400 down upon receipt of the trailer). We agreed that if he missed a payment, or could not pay the balance of the amount owed my husband would take the trailer back. The title would remain in my husband's name until the trailer was paid off in full. The friend agreed to these terms, but there was nothing in writing.

When my husband delivered the trailer the friend only gave my husband $200, stating that since we took so long to decide if we would sell it to him he had to purchase a small trailer for his cleaning business, and did not have the full $400. My husband agreed to take $200 instead of $400 down. We delivered the trailer to him on July 2nd.

August 2nd came and went, and no $300 payment was received. My husband finally called the guy on or about August 9th asking for payment. He stated that his mother was sick and he hadn't had time to send a check, but that he would put it in the mail. We finally got the check around mid to late August.

September 2nd came and went with no check. Then on September 9th, the friend called us and told us that the trailer was stolen from his brother's driveway. Since the title is still in my husband's name, my husband had to go over to the friend's house and file a report with the police.

Our homeowners insurance covers the trailer. However, the deductible is $1,000, and we are reluctant to make a claim because we do not want our insurance rate to increase.

The friend has refused to make anymore payments, stating that "he's not going to pay for nothing" since there is no trailer anymore. Isn't he liable for at least some of what he owes us since the trailer was in his sole possession, and he was using it for his wife's business? We were no longer using the trailer. At the very least, I would think it fair that he pay the $1,000 we would pay for our insurance deductible. On his first $300 monthly payment in August he wrote on the check that he owed us a balance of $2,800? Can we take him to small claims court for this amount or any lesser amount, or are we responsible for the trailer since the title was still in my husband's name?