Welcome to the Partnerships Section of the Insolvency Service Website

This section covers general information you may require regarding partnerships.

What is a partnership?

A partnership is a relationship which exists between two or more persons carrying on business together with a view to making a profit.

A partner can be an individual or a company (known as a corporate member), and is personally liable (usually without limit) for the debts of the partnership. Therefore a creditor of a partnership can pursue one or more of the partners personally, as well as the partnership itself, for a partnership debt.

We cannot advise you on specific insolvency matters. You should get independent advice on these matters from a solicitor, qualified accountant, or authorised insolvency practitioner (see List of Insolvency Practitioners) or a reputable financial advisor or debt councillor.

The Citizens Advice Bureaux is an organisation, which also may be in a position to offer advice to you in respect of any debts.

What happens after the partnership is wound-up?

Where a winding-up order has been made against the partnership, the partnership affairs are dealt with in the same way as a limited company.

Please see our guidance leaflets 'A Guide for Directors' (click here) and 'A Guide for Creditors' (click here).

Where bankruptcy orders have been made against individual partners, please see our guidance leaflet 'Guide to Bankruptcy' (click here), which explains the effect of bankruptcy.