Bankruptcy Debt Personal information.

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Q. I am a partner of a small company and due to a down turn in business I was forced to file bankruptcy. At the time of my discharge the company had 3 partners and 180K in debt. Since 60K of that debt was only personally guaranteed by me it was forgiven. Is that the same as far as the partnership is concerned as paying my share? The reason is I have left the company but remain a stock holder(33.3%) and they are using 100% of the profit to pay down the remaining 120K, shouldn't I get 1/3 of the profit since I already satisfied my 1/3 of the debt.

A. In a partnership, all partners are liable for debts and expenses (not considering limited partnerships here). As a result, you may have been relived of responsiblity for paying your share. But all that did is transfer the debt to the remianing partners. Once you filed for bankruptcy, you gave up your interest in the business, and have no right to any future profit. You also revmoved yourself from responsibility for any future debt. As this works itself out, your partners should be very mad at you for stiking them with an extra $20K in debt each. I would not expect any of them to ever speak to you again.

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