What is the outcome for personal creditors after the dissolution of the partnership involving partners A, B, and C?

Prepare for the Partnership Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Personal creditors of partners A, B, and C have the option to pursue individual partners' shares in the partnership following its dissolution. This right arises from the general principle in partnership law that each partner is personally liable for the debts and obligations of the partnership. Even after dissolution, the partnership's debts remain binding, and creditors can pursue the individual partners for the debts owed, particularly if the partnership assets are insufficient to satisfy all claims.

When a partnership dissolves, it typically means the business operations cease, but the partners remain responsible for the partnership's liabilities. If the partnership has debts, personal creditors can pursue the individual partners for their respective shares in the partnership, which may include their partnership interest or any personal assets they have. This principle is essential to maintaining fairness for those to whom the partnership owes money.

In contrast, personal creditors cannot solely rely on the partnership's assets if they wish to recover debts owed, and they do have recourse through the individual partners because those partners retain personal liability. Thus, understanding that individual partners can be targeted by personal creditors reinforces the interconnectedness of partnership obligations and personal liabilities.

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