 |
There are now two partnership regimes in the UK and our team is highly experienced in dealing with the issues that arise whether from distress or a need for reconstruction.
Traditional Partnerships
Partners have joint and several liability in respect of the partnership’s debts, and should the assets of the partnership be insufficient to meet its liabilities, creditors may pursue some or all of the partners personally.
Where appropriate a Partnership Voluntary Arrangement (PVA) may be considered. This will allow the partnership to reach a binding agreement with its creditors about payment of all, or part of, its debts over an agreed period of time.
The PVA may be used as a standalone procedure, or it may be supported by the IVA’s of the individual partners. In the event that it is not possible to implement a PVA, a partnership may be wound up in the Court. This may also lead to the bankruptcy of some or all of its individual partners.
Limited Liability Partnerships (LLP)
The LLP was established in 2001 and provides some protection to the personal assets of individual partners in the event of insolvency. The owners of an LLP are its ‘members’ and have limited liability for the debts of the partnership.
LLP’s have the same insolvency options as limited companies and more detail can be found in Corporate Insolvency.
For further information please click here to contact us. |
| Further information |
|---|
|
| Our CR&I services |
|---|
|
|
|