Advice for Partnerships
One important thing to remember about a partnership (joint and several) is that each member is also responsible for their partner’s business and personal debts; not just their own. This doesn’t apply if an LLP is in use. If a single partner or entire partnership is experiencing financial difficulty, each or all partners should seek advice before the situation gets any worse.
When it comes to insolvency, partnerships are dealt with via a hybrid of rules and regulations. Therefore, a partnership may be subject to the following procedures:
- Partnership Voluntary Arrangement
- Compulsory Winding up
- Partnership Administration Orders
- Interlocking IVAs