Partners in a general partnership

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Reference no: EM131293629

A, B and C were partners in a general partnership. A contributed $20,000, B contributed $6,000 and C contributed $4,000. Last year, C made a loan to the partnership for $10,000, which was needed by the partnership to pay its creditors. The partnership is now in liquidation and the assets have been liquidated and total $60,000. There are debts owed to the outside creditors totaling $35,000. B and C are personally insolvent. X, one of C’s creditors who has a judgment against C for $10,000, issued an execution to the Sheriff to obtain from the partnership the repayment of the $10,000 that the partnership owes to C. Y, one of B’s judgment creditors who has a judgment for $25,000 against B, seeks to execute against B’s capital contribution, and also against the partnership assets. On final settlement and distribution, how should the $60,000 be distributed? What are the rights of X? What are the rights of Y?

Reference no: EM131293629

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