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Partnership pitfall:
In a partnership's Chapter 7 case, the trustee can sue the general partners of the partnership if the partnership's assets are insufficient to pay all claims for the amount by which the partnership assets fall short of partnership debts. 11 U.S.C. 723.
As a result, partners may be facing a suit by a well funded trustee suing for the benefit of all creditors of the partnership.
Get good advice before contemplating a partnership bankruptcy.
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