Personal Bankruptcy Partners and Partnership Bankruptcy issues

[remremer]

If a partner of an LLP files for personal bankruptcy, what - if anything - happens by operation of law to the partnership?

This particular partnership was formed BEFORE WV's adoption of the UPA and the partnership agreement is silent on this issue.

Must the partnership begin dissolution? If not - and the partnership IS insolvent - can the partner file an Involuntary Petition against the partnership based on debt to the partner?

Only 3 partners.

 

[Michael Wechsler]

I would think that your partners would be very concerned. I'm wondering whether your agreement has provisions to deal with insolvency and bankruptcy of the partners.

 

[sarasotalaw]

That's something I would ask your local attorney. Are there any provisions in the partnership agreement?