ABSTRACT
In respect of the ordinary type of partnerships which are insolvent, rules are set out in the the Insolvent Partnerships Order 1994 (IPO). Schedules 1 and 2 to the IPO deal with modifications of the Insolvency Act 1986 in their application to insolvent partnerships. Schedule 9 sets out the prescribed forms. Insolvent partnerships are now treated as unregistered companies for the purposes of insolvency and can be wound up accordingly. Individual partners can also be made the subject of individual bankruptcy orders or, if they are corporate members of a partnership, winding up orders. When a partnership is wound up, its assets are first used to meet partnership liabilities and then any surplus goes to meet any shortfall in the personal liabilities of the partners (s 175A). However, the shortfall in the partnership liabilities ranks pari passu with the personal liabilities as regards the personal estates of the partners (s 175B).
