When partnerships file for bankruptcy, there are many financial, tax, and legal consequences. Oftentimes sorting these issues are complicated and require the help of a third party.

For tax purposes, the amount of tax obligations or benefits due to each partner will often depend on the partner's basis. If the partner has little or no basis, then that partner may not receive any tax benefits. 

For legal purposes, the legal implications will often depend on the type of partnership. If a partner is a limited partner, then that partner may not be liable for debt obligations, while a general partner may be liable for some or all of the debt obligations. 

If your partnership is considering filing for bankruptcy, contact the Austin bankruptcy lawyers of Slater Kennon LLP LLP at 512-338-1100.