Partnership and Sole Trader Insolvency

If you have a partnership or a sole trader and you are struggling with debt then this page of our site seeks to explain the difference between each and the processes available.  Therefore for partnership and sole tradership insolvency advice, please read on:-

Partnership Insolvency

What is a Partnership?

Partnerships are defined in the Partnerships Act 1890 as the relationship between persons carrying on a business in common with a view to profit.

What options are available to insolvent Partnerships?

Insolvent partnerships will mainly be placed into an IVA, a Liquidation or an Administration, all of which are covered elsewhere on this website, however legislation also allows for a process called a Partnership Voluntary Arrangement. This is modeled on a CVA and is similar to an IVA but it combines an action against all the partners together rather than the individual partners separately.

Bridge Newland Limited to not undertake any personal insolvency works and therefore only take on works for the LLP version of partnerships currently.

Sole Trader Insolvency

If you are a sole trader, and you are insolvent, you have the benefit of almost all formal insolvency options at your disposal however IVA’s are the most common in this instance.  For more details in this regard, view our IVA page.

Partnerships and Sole Traderships are two of the set-ups with the most complex options available in an insolvency situation, due mainly to the fact that there are a number of options.

Bridge Newland Limited to not undertake any personal insolvency works and therefore only take on works for the LLP version of partnerships currently.