In law a partnership can be liquidated as if it were an unregistered company.
A creditor can wind it up or bankrupt any combination of its partners. There are pros and cons to every option but, if you are a creditor and want to enforce recovery against a partnership, professional insolvency advice is recommended.
Partners can also petition to wind up the partnership as an unregistered company. However, with fewer than eight partners, court leave is required (and only given in certain circumstances).
Is liquidation the best way forward?
At Frost Group, we can rapidly review a partnership’s business to assess this. We’ll consider alternative forms of rescue procedure, while negotiating terms with creditors.
If we decide liquidation is the best option, rest assured we’ll work with the partners to maximise assets for all parties.
Call us on 0845 260 0101 to find out more about how we can help your partnership.