debts are business related

[allycat]

In a situation where the debts are business related debts incurred when in partnership with another persons, would one partner be able to enter into an IVA and how would this affect the other partner's potential liability for the debt?

[mikebdomain]

allycat is it a limited company?

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[MelanieGiles]

You refer to a partnerhip. The rules relating to partnership debts are than each partner is jointly and severally liable for the full amounts, unless you have a limited liability partnership.

If one partner entered into an IVA, the other partners would remain responsible for the debts, but a dividend would also be paid under the IVA proceedings, which could be subrogated in favour of the other partners.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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