Enforcement against partnerships
by David Carter on 08 October 2010
Partnerships, apart from limited liability partnerships, are not a legal entity, rather a collection of individuals trading together. As such, the partners are liable for the debt of the business and this liability is not limited.
When enforcing against a partnership, the creditor is best advised to obtain a judgment against the partnership, so that the partnership’s assets may be seized. Then, when applying for the writ of fieri facias (Fi-Fa), the creditor needs to include the name/s of the individual partner/s within the command portion of the writ. This then gives the creditor, via the High Court Enforcement Officer (HCEO), the option of enforcing against the partnership, the partners individually or both.
If the creditor wishes to enforce the writ at the private residence of a partner, it is important that the partner is identified personally in the writ, so as to avoid potential interpleader claims after enforcement.
As a word of warning, if the writ is solely against a partner, and not the business or other partners, then seizing the assets of the partnership may also give rise to an interpleader claim by the other partners, looking to recover the business’s assets.
The creditor is not permitted to seize the partnership’s assets if the debt is a personal debt owed by one partner (rather than a debt owed by the business). However, the creditor may seek a charging order over the partner’s share of the partnership assets.
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Disclaimer: The statements and opinions expressed in this article are those of the author and do not necessarily reflect those of Sheriffs High Court Enforcement Ltd, trading as The Sheriffs Office. Sheriffs High Court Enforcement Ltd does not take any responsibility for the views of the author. The author will not be held responsible for any comments posted by visitors to this site. Please note that this article does not constitute legal advice. The author has used his best endeavours to make this article as accurate and complete as possible, but requests that the reader be aware that the law of England and Wales frequently changes. The author strongly advises the reader to take legal advice before embarking on any enforcement action.
