Partnership Liquidation

In law, a partnership can be liquidated as if it were an unregistered company.

If you’re a creditor, you can wind it up or bankrupt any combination of its partners. There are pros and cons to every option but, if you want to enforce recovery against a partnership, professional insolvency advice is recommended.

Partners can also petition to wind up the partnership as an unregistered company. However, with fewer than eight partners, court leave is required (and only given in certain circumstances).

Is liquidation the best way forward? At Frost Debt Solutions, we can rapidly review a partnership’s business to assess this. We’ll consider alternative forms of rescue procedure while negotiating terms with creditors. If we decide liquidation is the best option, rest assured we’ll work with the partners to maximise assets for all parties.