Note and Comment

Authors

Charles Weintraub, University of Michigan Law School
William F. Spikes, University of Michigan Law School
Paul B. Barringer Jr, University of Michigan Law School
Stuart S. Wall, University of Michigan Law School
Ralph W. Aigler, University of Michigan Law School

Abstract

A Partnership as a Farmer in Bankruptcy - After much uncertainty and difference of opinion among the courts as to the position of Partnerships under the Bankruptcy Act certain phases of the problem were set at rest by the Supreme Court in Francis v. McNeal. By that case it seems to have been authoritatively settled (1) that in determining the solvency or insolvency of a partnership the individual estates available for payment of firm debts are to be considered, and (2) that an adjudication of the firm as such draws into the proceeding the administration of the estates of members though they have not been adjudicated bankrupts as individuals. In considering the theretofore much mooted question as to partnerships being entities for purposes of bankruptcy, Mr. Justice Holmes, speaking for the court said: "No doubt these clauses [§1, §5a, §14a] taken together recognize the firm as an entity for certain purposes, the most important of which after all, is the old rule as to the prior claims of partnership assets and that of individual debts upon the individual estate." For purposes of proceedings in bankruptcy it seems that partnerships are deemed to have a suitable existence as firms separate and apart from the members, for a petition in bankruptcy may well be filed against "A & Co." It is not necessary that the petition be against "A, B & C trading as A & Co."; and the firm as such may be adjudicated a bankrupt without affecting the individuals or their estates, except as above noted.

Recommended Citation

Charles Weintraub, William F. Spikes, Paul B. Barringer Jr, Stuart S. Wall & Ralph W. Aigler, Note and Comment, 12 Mich. L. Rev. 483 (1914).
Available at: https://repository.law.umich.edu/mlr/vol12/iss6/4