Legal Question in Business Law in California

Re: Personal Bankruptcy and Partnership Liability

Yes. A personal bankruptcy of a partner will have a profound effect upon the partnership. The bankruptcy of a partner causes that person to be dissociated (i.e., kicked out) from the partnership by operation of law. See Corporations Code section 16601. That does not necessarily terminate the partnership, but the remaining partners must take action to buy out the dissociated partner and continue the partnership. Of course, the remaining partners remaim liable for the partnership's debts to outsiders.

In short, you don't want to be in a partnership with anyone who is a bankruptcy candidate. It will be a disaster.

Re: Personal Bankruptcy and Partnership Liability

There is not enough room to write an answer to your question. If this is dealing with your income and how you survive why are you sitting in front of a computer monitor looking for free legal advice than paying someone who has expertise and experience in business law/business practice to give you could solid advice based upon information that you personally give that attorney. The really wanna wait for this minimal legal advice which would affect your income and credit standing for the rest of your life, or maybe a significant number of years from now. Basically, it depends. It depends on so many different factors that you must get the right questions asked by the attorney to give you the appropriate answers to your concerns. Yet your self and attorney immediately before you do anything else. Your question scares the hell out of the in terms of what you'll might or might not to without the proper information and requirements to protect yourself, sister, family or not.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Re: Personal Bankruptcy and Partnership Liability

Your sister's bankuptcy action will have an effect on your partnership on various levels. If you have not yet formed one, I would look into all of the different aspects that it may effect and think of alternative business solutions/entity formations.

Feel free to contact our office to discuss this further,

Samira Ansari (408) 371-0062