if a partner in a partnership goes bankrupt is he required to cease his partnership. If not when he receives a shares of partnership profits going forward can any previous share of partnership losses reduce the profits. (bankruptcy was due to debt outside of the partnership)
Potentially the issue will be how the partnership was set up.
Safer to assume that consequence will be to dissolve the partnership to ensure that the other partner does not inherit any liabilities.
You need to speak to an accountant re. the other half of your question.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
The partnership would likely be dissolved and the debts of the partnership become the full responsibility of the non insolvent partner. The assets of the partnership will also have to be addressed which can cause serious issues. You need legal advice.
The Partnership automatically dissolves on the making of the Bankruptcy Order so the remaining partner/s need to take urgent advice and action. They will be responsible for eh partnership liabilities. If it was profitable as it sounds they will no doubt need to form a new trading entity and buy the assets off the old partnership. The Bankrupts share of those assets will then form part of his Bankruptcy estate. Even if the original partnership could continue somehow and any profits became available they would be due into the Bankruptcy estate, not the individual.
