Partnership debt solutions
Access Debt Solutions provides a range of partnership debt solutions.
It is important to know that partners are jointly and severally liable for all business debts. This means that all partners can be pursued for the total debt; it is not possible to divide it into partners' shares. If creditors cannot obtain payment of a debt from one partner, they will seek payment in full from the others.
If one partner goes bankrupt, although the debt will be written off for that partner, creditors can still pursue the remaining partners (or former partners) for the whole debt. In effect, what this means is that partners with most assets have the most to lose.
It is recommended that to prevent such situations a partnership agreement be arranged to legalise the obligations between the partners, this will help to avoid or clear-up any disputes which may arise such as profit and the extent of liabilities.
For free advice on partnership debt solutions contact us via our business health check form or call us now on 0800 694 0484.
Follow the links below for further detail on other debt options for sole traders and partnerships: