This is where a creditor has petitioned. Each partner will receive a bankruptcy petition at the same time.
A creditor of a partnership can petition for either:
- The winding up of the insolvent partnership as an unregistered company, with no action taken against the individual partners; or
- The winding up of the insolvent partnership as an unregistered company, with bankruptcy petitions also presented against one or more of the partners.
Alternatively, a creditor may choose to only pursue the partners for the debt by petitioning for the bankruptcy of one or more of the partners without petitioning for the partnership to be wound up. The partnership debt will be treated as the debt of the partner against whom the bankruptcy petition is presented.
A member of a partnership may also petition for the insolvent partnership to be wound up as an unregistered company with no action against the insolvent partners, or with action taken against the insolvent partners individually.
A creditor can only apply for a winding-up order against the partnership if that partnership has traded in England and Wales at any time in the three years before the petition is presented.
Specific advice should be obtained before taking action, or refraining from taking action, on any of the issues covered above.
For further information, please contact one of our Partners who will be able to assist you.