Insolvency of general partnerships—priority of expenses and debts
Produced in partnership with Natasha Dzameh of St John's Chambers
Insolvency of general partnerships—priority of expenses and debts

The following Restructuring & Insolvency practice note produced in partnership with Natasha Dzameh of St John's Chambers provides comprehensive and up to date legal information covering:

  • Insolvency of general partnerships—priority of expenses and debts
  • Coronavirus (COVID-19) and the Corporate Insolvency and Governance Act 2020
  • Applicable law
  • Priority of expenses
  • Joint estate under Insolvency Act 1986, ss 175 and 328
  • Priority of debts
  • Ranking of debt for credit institutions, investment firms and others
  • Brexit impact on credit institutions

Insolvency of general partnerships—priority of expenses and debts

Coronavirus (COVID-19) and the Corporate Insolvency and Governance Act 2020

This content is affected by the coronavirus (COVID-19) pandemic and the Corporate Insolvency and Governance Act 2020 (CIGA 2020). For further details on the impact of coronavirus on restructuring, see our Coronavirus (COVID-19) toolkit and for related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview. For further information on CIGA 2020, see Corporate Insolvency and Governance Act 2020—overview.

Applicable law

The pre-Insolvency Act 1986 (IA 1986) common law adopted a rule of convenience that in administering the estates of an insolvent partnership and its members, the debts of the firm ought to be paid out of the assets of the firm and the private debts of a member or members ought to be paid out of the assets of the member or members. In the event of a deficiency in either estate then it would be made good by any surplus in the other estate or estates (see Re Rudd & Son).

This Practice Note addresses the rules applicable to cases falling within the scope of the Insolvent Partnerships Order 1994 (IPO 1994), SI 1994/2421. For a discussion of what constitutes the assets of a general partnership, see Practice Note: The nature of a general partnership and its legal framework

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