Our Services - Partnership Insolvency
We advise on all aspects of and take appointments in partnership insolvency including interlocking Individual Voluntary Arrangements(IVA's), Partnership Voluntary Arrangements (PVA's), Partnership Administrations, the insolvency of Limited Liability Partnerships (LLP's), and the compulsory winding up of unincorporated partnerships.
Individual Voluntary Arrangement (IVA’s)
If you jointly with your business partner have financial problems arising from your unincorporated business partnership you may wish to consider inter-locking Individual Voluntary Arrangements. An IVA is a very flexible procedure. Each proposal is tailored to suit the individual's circumstances incorporating and dealing appropriately with domestic and business assets and liabilities. In simple terms it is a legally binding contract between you and your creditors.
An IVA may allow the survival of a viable core business, it may allow you to retain your home and it is not necessary to offer a payment in full to your unsecured creditors where the facts demonstrate that this is not possible within a reasonable timeframe. A fair and reasonable proposal will be treated by creditors on its merits. If seventy-five percent or more by value of those creditors who vote accept what is offered, all of your unsecured creditors are bound by the terms of the proposal.
more informationPartnership Voluntary Arrangement (PVA’s)
If you have a substantial unincorporated/non LLP partnership with distinct partnership assets that is experiencing financial problems you may wish to consider a Partnership Voluntary Arrangement as a preferable alternative to multiple Individual Voluntary Arrangments, Bankruptcies or a Partnership Winding Up.
The procedure is particularly appropriate for multiple partner businesses with significant partnership estate assets such as professional practices. The procedure does not deal with individual partner’s estates and in some cases it may be necessary to propose IVAs for individual partners.
more informationPartnership Administration
Where an unincorporated/non LLP partnership is insolvent and where a rescue of that partnership or business is possible, an Administration may be appropriate. An Administrator is a Licensed Insolvency Practitioner appointed by the partners of the business out of Court, a floating charge holder (for example the holder of an agricultural charge) or by the Court on application. An Administration protects the partnership and its business from its creditors whilst proposals regarding its future are prepared. It does not protect the individual partners’ estates and other assets and the individual will need to deal with any residual claims of creditors following the Administration. The Administrators deal with all classes of creditor. The procedure is similar to that of company administrations.
more informationThe insolvency of Limited Liability Partnerships (LLP’s)
Limited liability partnerships are dealt with in a similar manner to companies when they become insolvent. An LLP may enter into a Voluntary Arrangement, Administration or be wound up through a Creditors Voluntary Liquidation or be wound up through the Court. Please see the relevant Corporate Insolvency sections on this website and for an impartial overview:
The liquidation of unincorporated partnerships
Where a partnership is insolvent and where a rescue of that partnership or business is not possible by way of an Administration or Individual or Partnership Voluntary Arrangements, the partners may consider, after having taken advice, instructing lawyers to petition for the winding up of the partnership. Such liquidations are often accompanied by Individual Voluntary Arrangements or Bankruptcy Orders for the individuals. In all cases the Official receiver will deal with the liquidations and Bankruptcies in the first instance although the estates may subsequently be administered by a Licensed Insolvency Practitioner
