What are the options for an insolvent partnership?

 

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11. What are the options for an insolvent partnership?

The methods of dealing with an insolvent partnership are similar to those for a company: winding up, partnership voluntary arrangements and administration orders. (An administrative receiver can only be appointed to a limited liability partnership under a debenture created before 15th September 2003.)

If you are a partner, you can be made personally bankrupt, with the debts of the partnership ranking as a claim in your bankruptcy alongside the claims of your personal creditors.