Best Partnership Liquidation Companies

When looking for a Partnership Liquidation company, you need to choose a reputable business.

The best Partnership Liquidation company in 2024 is there to assist you with business debts and provide confidential advice.

There are many cheaper liquidation businesses to choose from, but here is an updated list of the top-rated Partnership Liquidation companies in the UK.

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Best Partnership Liquidation Companies 2024

There are many top-rated Partnership Liquidation companies in the UK to choose from.

From our research, here is a list of the best Partnership Liquidation companies in April 2024:

  1. Business Insolvency Company
  2. Debtline
  3. GW Financial Solutions UK Ltd
  4. Business Debt Help 
  5. Trust Debt Advice
  6. NTF Financial Solutions Insolvency
  7. Payplan
  8. National Debt Advice
  9. Stepchange

What is a Partnership Liquidation?

Partnership liquidation refers to the winding up of a partnership by collecting the remaining assets and settling any existing debts with non-partner creditors. Once debts are paid, the remaining assets are distributed between the partners.

A partnership can be wound up as an unregistered company if it falls under one of the following categories:

  • The partnership cannot pay debts.
  • If this is judged to be fair by the court, it will wind up the partnership.
  • The partnership ceases to trade (dissolved).

A petition must be presented to the court, and a hearing date set before the liquidation can occur. An order will be made to close the partnership at this hearing.

The official receiver deals closely with the partnership once they are appointed as liquidators.

How Long Does a Partnership Liquidation Take?

Liquidation is commonly closed within 9 months after the official receiver is appointed.

However, the time it takes will depend on the number of assets and creditors the liquidator must deal with.

If there are many complicated assets to distribute and creditors to pay, the liquidation process can last much longer.

What Happens To A Business After Entering Into A Partnership Liquidation?

The liquidation of a UK partnership starts with a licenced insolvency practitioner reviewing all of the company’s assets, including business property, funds and any outstanding debts.

Partners will only receive their share of assets once all debts have been paid to the creditors.

The liquidation process will normally be used in conjunction with other insolvency methods. If there are insufficient funds to pay back debts in the liquidation, these debts can be passed to the individual partners.

If the individual partners agree that the partnership is insolvent, they should consider alternative debt solutions such as an IVA.

How Would I Wind Up An Insolvent Partnership?

When winding up an insolvent unlimited partnership, there are five methods to choose from:

  1. Wind up the partnership on the petition of a partner with no existing petitions against any partners.
  2. Wind up the partnership as an unregistered company with no existing petitions for the bankruptcy of the partners.
  3. Wind up the partnership which has existing petitions for bankruptcy of one or more of the individual partners.
  4. Wind up the partnership which has existing petitions for bankruptcy for all of the individual partners.
  5. Partners joint bankruptcy petitions against all of the partners individually but not the partnership itself.

A creditor must file a petition for winding up in order to recover a debt of £5,000 or more. It can only be served when a Statutory Demand has been issued and no payment or settlement has been reached.

The decision on which winding up the option to take must be made by partners who own the assets after careful analysis of how this affects liabilities and separate financial positions.

Benefits of a Partnership Liquidation

The main benefit of Partnership Liquidation is when a partner wants the partnership assets to be applied against its debts. The partnership will need to have sufficient funds to pay creditors’ debts if this is to be a successful method.

In comparison to creditors voluntary liquidation, there are fewer advantages to winding up a partnership, which can be an expensive process.

Risks of a Partnership Liquidation

The risks associated with the liquidation of a partnership include:

  • The partnership may have insufficient funds to pay debts.
  • There is no guarantee that individual partners will have the funds to pay debts if they become liable

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Other Debt Solutions

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Here are all the debt solutions available to you depending on where you are based in the UK:

All UK Insolvency Practitioners

Here is a full list of Insolvency Practitioners in the UK:

The insolvency practitioner list above gives you plenty of options to choose the best Insolvency firm in April 2024.

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