How to File a Partnership Bankruptcy
Partnerships can file for bankruptcy protection just like any other business organization. Filing a bankruptcy petition for a partnership is different than when you file personal bankruptcy, as a partnership is a separate legal entity. Declaring bankruptcy will irrevocably affect your partnership, whether or not the organization dissolves. You'll have to ensure the proper steps are taken when you file your petition, and make sure you are seeking the proper form of bankruptcy for your situation.
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Instructions
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Determine what kind of bankruptcy you need. Partnerships can file for bankruptcy under Chapter 7, Chapter 11 or Chapter 13. There are important differences among the different bankruptcy filings. You'll need to determine which one best suits your situation, as each has specific rules and outcomes associated with it. Talking to a qualified bankruptcy attorney is your best option when determining under what chapter to file.
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Get the appropriate documentation. Filing for bankruptcy protection is a paper-intensive process. You can get a head start by downloading the appropriate forms through the U.S. Bankruptcy Court website. You must list all creditors, debts, assets and all partnership financial information. This is vital. Failing to include information in a bankruptcy petition can cause serious problems down the road.
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Have your attorney file your petition. Unlike individuals, partnerships cannot file for bankruptcy as pro se litigants. You will need a qualified attorney to file the bankruptcy pleading for you. You will also want to ensure your attorney prepares you for the upcoming bankruptcy process and subsequent proceedings.
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