Rights Of Partnership Trustees In Chapter 7 Bankruptcy

The trustee representing a partnership has a duty to collect, assimilate, appraise, and distribute assets during the course of administration of the partnership estate. Included within the prevue of administration, trustees routinely collect upon liability of general partners owed to the partnership. Unpaid, past due, or debts owing that arise out the partnership are subject to collection. Frequently, when one partner files Chapter 7, the remaining partner becomes liable for all partnership debts and may be forced into bankruptcy similar to a non-filing spouse in a troubled separation.