Contact David Kirk by email direct by clicking on his name

01392 474303

How To Dissolve A Partnership With Financial Problems

The quick answer

If the business is a solvent partnership then it will be dissolved by agreement between the relevant parties in accordance with a partnership agreement. If the business partnership is insolvent and cannot pay its debt then it will go into Liquidation, Administration or a Partnership Voluntary Arrangement (“PVA”). 

In more detail

There are two types of partnership. The first is a partnership where all of the partners are jointly and severally liable for the debts. The other is an LLP where there is limited liability.

In the case of an insolvent partnership needing dissolution, the usual route is Liquidation. In more urgent situations Partnership Administration can be used as it is a faster option. It is also very useful where a business can be rescued as it stops all legal action, such as the bank, appointing a receiver.

For a normal (non LLP) partnership, the partners are all jointly liable for the debts not paid for by the partnership assets. This can have serious implications for the individual partners which might mean that a PVA is a better route and even possibly Individual Voluntary Arrangements for the partners.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

More questions in this section

David Kirk


David Kirk ACA FABRP

We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill



Sign up to our newsletter

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner