Legal Question in Civil Litigation in Michigan
Michigan- is a business partnership or the partners liable or responsible for the non business debt or obligations of an individual partner even if it is not related to the activity of the partnership business?
1 Answer from Attorneys
Where money is borrowed by the partnership, or items are purchased in the partnership's name, the partnership is liable, and each partner is liable for the full amount. This means if one pays nothing, the other pays it all. (Unless the company is set up as an LLC, but that is a different situation than a partnership.) Creditors will always look for a liable party with "deep pockets" to satisfy a debt that is delinquent.
If a partner buys a house to live in, a boat that is not used for partnership business purposes, or borrows money for his son's college education, these are clearly individual debts. You rquestion doesn't specify what sort of debt one partner is attempting to make the partnership liable for. A general practice attorney can apply the law to the facts of your case with more specific information.