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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11154
Experience:  30 years as a practising solicitor.
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I live in Scotland and I have a business. It's a partnership

Resolved Question:

I live in Scotland and I have a business. It's a partnership but my partner died recently, we had no partnership agreement, and I am now winding things up. I have more debts than I am able to pay at the moment and although the sale of the building would cover the debts, I am doubtful that the building is going to sell. What can I do in this situation? Also, if I become bankrupt and there was money left over after the building sold and all debts were paid, what would happen to this money? Is there any liability on my dead partner's estate or is it all on me now?
Submitted: 11 months ago.
Category: Law
Expert:  JGM replied 11 months ago.

You and your deceased's partner's estate are liable for the partnership debts up to the date the partnership ceased on his death. if you become bankrupt and there is a surplus after the sale of the building after all debts and fees have been paid then the balance would be paid to you and to his estate. You should not do this if there is a prospect of selling the building and certainly not if you have other assets. At this stage I would write to all creditors saying that the business has ceased following your partner's death and that the business is being wound up with a view to repaying all creditors in full. That would hopefully buy you some time and you can concentrate of the sale of the building. I hope that helps. Please leave a positive rating so that I am credited for my time.

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