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Individual partner and member petitions
September 1997
45.200 Insolvency proceedings against an individual partner
A bankruptcy or winding-up petition may be brought against an individual partner in respect of a partnership debt without issuing such a petition against other partners and without presenting a petition to wind up the partnership. Where one partner has entered into a voluntary arrangement, a bankruptcy order may still be made against another partner for a partnership debt [Note 1] [Note 2].
Provisions of the Insolvency Act 1986 are modified under article 11 of the Insolvent Partnerships Order where a joint bankruptcy petition is presented by individual members without winding up the partnership as an unregistered company so that the following provisions of the Act apply:
a. part IX (except sections 273, 274 and 287) and
b. parts X to XIV, as modified by schedule 7.
A petition under article 11 may be presented to the High Court if the partnership has (or had) a principal place of business in England and Wales or to a county court if it has (or had) a principal place of business within that court’s insolvency district. The partnership must have carried on business in England and Wales within the 3 years prior to the presentation of the petition [Note 3].
45.203 Presentation of joint bankruptcy petition
A bankruptcy petition may be presented under article 11 by all members, provided that they are individuals (i.e. not corporate partners). It must be accompanied by: an affidavit in statutory form signed by the member who signs the petition, stating that all members are individuals and they concur in the petition; or a statement signed by all members that they are individuals.
The petition must contain a request that the trustee wind up the partnership business and administer the partnership property without the partnership being wound up as an unregistered company [Note 4].
Where the court is satisfied that it would be impracticable for all members to present the petition, it may specify which member(s) should present the petition [Note 5].
45.204 Withdrawal or dismissal of the petition
A joint bankruptcy petition may not be withdrawn without leave of court.
The court has a general power to dismiss a joint petition or to stay proceedings on such a petition on such terms and conditions as it thinks fit [Note 5].
45.205 Grounds for the petition
A joint bankruptcy petition under article 11 may only be presented where the partnership is unable to pay its debts [Note 6].
The petition must be accompanied by a statement of affairs in the prescribed forms for each member and for the partnership [Note 6]
[Back to Part 14 - Partnership winding-up petitions]