Must All Business Partners Agree to File Bankruptsy
We are about 7 partners in a motel, each one 10-15% each. However, there was fighting between all partners, and one of the partners "just left". He is not willing to sign anything relating to motel, or be involved in anyway. Other partners stopped giving him any information about operation of the motel. I was never involved in operations and continued not to be involved.
Motel is doing very bad due to economic recession, so bankruptsy is one of the considerations. Can bankruptsy be filed without signature of ALL partners in the property? If one of the partners refuses to sign bankruptsy filing and refuses to provide any further capital, can bankruptsy be still filed? I understand bank will just foreclose on the property if we are unable to sustain ourselves.
Re: Must All Business Partners Agree to File Bankruptsy
What do you mean "partners"? Are you stating that an unincorporated partnership owns and operates this motel? (Seriously?) I would have expected you to have formed a corporation, with shares issued to each owner, and bylaws that spell out how issues like these are resolved.
Re: Must All Business Partners Agree to File Bankruptsy
We are incorporated with LLC. I am not sure about the bylaws as the partner who left us stranded is the one who formed the LLC in the first place, and we do not have copy.
If nothing is spelled out in the bylaws, what would happen?