Insolvency of Partnership Firm

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My husband work in a private firm in Mumbai. My father-in-law runs his own auto spare parts firm, it is a partnership firm with my mother-in-law where her name is there only for records purposes, but for all practical purposes, the firm is run by my father-in-law. The firm has made huge business losses in the past 4-5 years. The creditors are calling up constantly and my father-in-law has decided to sell his house and assets to pay the creditors. However the amount will still not be enough to repay all the creditors.

I am concerned if my husbahd's assets can also get attached. He is not involved in the business and is a salaried employee in a firm. Please advise.

 

 

Replies (1)

In a Partnership Firm only the Partners will be liable to repay the debts of the Company. The Creditors only claim repayment form the partners for the claims and not from a person who is not a partner of the Partnership Firm. The Creditors will have a charge only on the property and assets which are in the name of your father-in-law and mother-in law and the other partners, if any

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