Partnership and bankruptcy
I had formed a partnership with a friend of mine. We have a bank account for the partnership. Out of the blue my partner declared bankruptcy a week ago without informing me. My concern is that the bank account is a joint account with a significant amount of cash which is mine. How do I go about getting the money back?
Let’s start with something you need to understand – if your business operated as a partnership (not a corporation) then as soon as your partner filed for bankruptcy your “partnership” ended. If it we me, I nwould go and withdraw all of the funds from the partnership account while you can and then if your partner’s trustee asks you can provide an accounting and negotiate how much belongs to the bankrupt.
If the money has already been removed then you will have to advance a claim against the bankrupt estate for the money. If the dollars involved are large enough, you may want to speak to a lawyer to help you recover the funds. Frankly, if the money is gone, then it is unlikely you will be able to recover it…