partnership closure what will happen next

mark1e

Hi I work for a partnership, where the firms bank account has been frozen by one of the partners ex wife in a messy divorce case. The bank are returning all cheques issued as unpaid and returning the direct debits. The firm is currently substantially overdrawn .

One of the partners says there is nothing he can do, we should be prepared for job losses.

LinasPilibaitisisbatman

You're pretty screwed tbh. If you leave you forego any right to redundancy payments etc.

As for not banking cheques. I think the ex wife would be concerned to know about that.

WestonDave

The one saving point from your perspective is that in a partnership it doesn't matter so much what the firm can afford, as what the partners can afford. If any of them has the money to pay your salary, even if they have to sell their house to do it then they have no choice but to do it. Partners have unlimited personal liability for losses and debts incurred by the partnership. I find it very hard to beleive that none of them have any equity in their houses or money in savings etc. In any event if you stop working it won't help you are you won't find another job that quickly.

LinasPilibaitisisbatman

WestonDave wrote: »

The one saving point from your perspective is that in a partnership it doesn't matter so much what the firm can afford, as what the partners can afford. If any of them has the money to pay your salary, even if they have to sell their house to do it then they have no choice but to do it. Partners have unlimited personal liability for losses and debts incurred by the partnership. I find it very hard to beleive that none of them have any equity in their houses or money in savings etc. In any event if you stop working it won't help you are you won't find another job that quickly.

Whilst true the partners could just go bankrupt and whilst there is personal liability its unlikely they would be forced to sell homes etc in bankruptcy. Other assets yes but not a home. Especially if its a family situation,

LittleVoice

LinasPilibaitisisbatman wrote: »

You're pretty screwed tbh. If you leave you forego any right to redundancy payments etc.

As for not banking cheques. I think the ex wife would be concerned to know about that.

There was no mention of not banking cheques.

LinasPilibaitisisbatman

Be very careful

If you know the accounts and funds are frozen/arrested and take part in fraud to avoid this then you might have more than pay to worry about.