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Partnership creditors receive any payment from such assets

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Reference no: EM131337946

Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the firm’s note for the loan. In addition, each partner guaranteed the note individually. The firm became insolvent, and receiver was appointed. The bank claims that it has a right to file its claim as a firm debt and also that it has a right to participate in the distribution of the assets of the individual partners before partnership creditors receive any payment from such assets.

Law involved?

Explain the principle involved in this case?

Is the bank correct?

Reference no: EM131337946

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