My business partner has been declared bankruptcy even tough our p'ship is solvent . Will our p'ship bank account be frozen now as this will prevent us from continuing to operate a solvent business?
I don't deal with partnerships but yes, I would imagine that the bank will temporarily freeze the account until the Official Receiver has investigated.
Hi John, the first thing you need to understand is that normally the partnership will be disolved when one of the partners is made bankrupt. You may continue to trade but it will be as a sole trader or (if more than 2 partners) a partnership with one less member. As the surviving member you must account to the Official Receiver for his share of the business and whilst you may continue to use the same trading name you should not intimate that he is still a partner, what you really need to do is speak to the OR in charge of his case as soon as possible
My business partner has been declared bankrupt. What impact will this have ?
Posted - 18 November 2012 : 11:12:00
