Partnership Insolvency

The insolvency of a business which is carried on as a partnership produces complex issues.

Where such a business is insolvent, the assets of the individual partners are at risk, since each of the partners is jointly and severally liable for the liabilities of the partnership. Even salaried partners who are indemnified by the equity partners are potentially exposed.

Often the insolvency of a partnership can bring about the bankruptcy of the partners, unless early action is taken to avoid this.

We have extensive experience in dealing with partnership insolvency and, in some circumstances are able to formulate strategies to save the business and protect the assets of the partners.