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My partner (there are 3 of us) is fileing for bankruptcy what can i do to portect my interest?
Anonymous6 views2 answers
she took the bank account and set up a different bank account and had it closed to me. I just got access to it today and found out there it is short approx $6000.00 to $8000.00. I know what the business brings in and I know the expenses for the account. there should have been approx $1000.00 surplus each month since March of 2010. I need the books and the checking account returned to me as per the partnership agreement. What do I need to do to protect the partnership and myself?
First, you can hire a lawyer to represent you and the business in the bankruptcy. If the business has value (its assets add up to more than its debts), the bankruptcy trustee may try to liquidate the business. Typically, you and your other non-filing partner would get your share of the money, but you may need to negotiate with the trustee as to the amount. Also, you may have the opportunity to buy out your partner by paying the trustee.
The question depends a lot on what the business owns and whether it actually has assets that can be sold to pay creditors. It is pretty common for a business to really have no value because of the equipment and land that it owns has liens against it. Most states and most attorneys will not actually take a business through bankruptcy unless there is something tangible to divvy up.
Conversely, if there ARE assets that need to be sold to pay creditors as best you can, you do need to get a bankruptcy attorney. This also protects you from claims against the partnership that might arise in a year or two.
It sounds like you have a partner that breached her fiduciary duty, and that means you need to sue her and get those funds back.
