Who has a claim to settle their accounts in the liquidation process?

In the liquidation process of a partnership, all partners in the business have a claim to settle their accounts. This is grounded in the principles of partnership law, which recognize that each partner has a financial interest in the partnership and is entitled to participate in the distribution of assets during liquidation.

When a partnership is being dissolved, the assets of the partnership are first used to pay off creditors, and any remaining assets are then distributed among the partners according to their respective interests in the partnership. This inclusive approach ensures that all partners, regardless of their role within the business, have an equitable claim to settle accounts based on their ownership stakes and contributions to the partnership.

Non-partner creditors will be paid before any distributions occur to partners, but once all external obligations are settled, the partners collectively participate in the distribution of any remaining assets. This approach upholds the fairness and transparency of the partnership relationship, ensuring that all partners' financial entitlements are acknowledged in the liquidation process.