Should a partnership become insolvent, there are various options available to the partners to deal with its affairs.
- Partnership administration – see our separate guides to administration and pre-pack administration.
- Formal winding-up of the partnership as an unregistered company – see our guide to compulsory liquidation.
- Partnership Voluntary Arrangement (PVA) – see our separate guide on company voluntary arrangements which will apply.
What Else Should I Know?
Because partners may became personally liable (depending on the partnership assets and liabilities) it may be appropriate for the partners to consider entering into interlocking IVAs, although this is dependent on your individual circumstances. As an alternative the partner may need to consider bankruptcy.
What Services can PBC Business Recovery and Insolvency Undertake?
PBC Business Recovery and Insolvency can undertake the following services:
- We can advise partners on which of the three situations outlined above would be most appropriate.
- We can then act for the partnership and partners accordingly.
- We can act on behalf of creditors who are concerned about the financial situation of a partnership customer.