Legal Question in Credit and Debt Law in Ohio
Joining a partnership frees you from past debts?
If a person is owed money for free lance work from two small business owners, and the two owners form a partnership with another party, are the two owners liable to the person for the money that is still owed. The owners claim that the person can no longer collect on the debt, because they have joined the partnership and other party in the partnership cannot be liable for the owners past debts.
1 Answer from Attorneys
Re: Joining a partnership frees you from past debts?
Partnerships are normally not corporations. Unless the parties formed a LLC (limited liability corporation) the owner's personal and business debts are the responsibility of the owners.
Because I do not know what type of partnership your debtors started, I cannot sufficiently answer your question. However, you should still be able to obtain a judgment against the owners when they owned the sole-proprietorship.
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