Partnership assets/ small claims

[pbr4242]

What is the name of your state? Maine I recieved a judgement from small claims court and I am scheduled to have a second disclosure hearing. The person who owes money plead poverty and said he was unable to pay at the first hearing. However at the first hearing I discovered that he is a general partner in an auto sales business in which there was plenty of assests listed on his tax return to cover the debt. At the next hearing he is supposed to bring this years tax returns and I will check the assests listed to see if they cover the debt. The judgement is unrelated to the business in which he is a partner. My question would be can his assets in the partnership be used to pay off a personel small claims debt. Any help much appreciated. Thanls

 

[stephenk]

he is a general partner, right? you can garnish his portion of the partnership.

 

[pbr4242]

That is what I am not positive on. Whether interest in a partnership can be used in a non-related personel debt like small claims. Thanks

 

[OnlyOneVoice]

I'm not sure about Maine,

But in some states if the business is incorporated you can't touch the business assets for personal debt nor can you touch personal assest for business debts.

 

[JETX]

Onlyone is confused.
There is nothing in the original post to imply that the judgment is against a corporation, in fact, it is clear that the debtor is an individual.

The question:
"My question would be can his assets in the partnership be used to pay off a personel small claims debt"
*** Answer: Yes, but only as to the value of his partnership interest. Simply, the 'general partnership' (other individuals) are not liable for the individuals debt, but the 'interest' of the partnership assets owned by that individual are.

Also, partnerships will often step forward and make payment on the debt (if a reasonable amount), since that is often less cumbersome (cheaper) than trying to account for individual interest.

 

[pbr4242]

Appreciate your reply to my question. Your answer is similiar to my thoughts. Now I will have to present it in a way to get an order from the judge for him to pay. Thanks