Creditor Services
Partnerships
The world of unlimited liability partnerships is extremely complex with many different types of partnership structures in different business sectors but all being governed by the Partnership Act 1890.
Unlike a Limited Company the partners of an unlimited liability partnership do not have the benefit of limited protection. The partners will have joint and several liability in respect of the partnership debts should there be insufficient funds to meet the liabilities. This may cause vulnerability of the partners if the action of one partner jeopardises the position of another who has no control over the situation. It is therefore possible that creditors may pursue one or all of the partners personally.
Whether it is options to be considered to prevent the failure of a partnership and the resulting bankruptcy of the partners, (the main one being a Partnership Voluntary Arrangement) or to obtain advice on the restructuring of the partnership, it is important to act quickly. Geoffrey Martin & Co have wide experience in problem solving and providing options for both partnerships and individual partners in relation to the traditional unlimited liability partnerships.