Dividing debts of business among brothers


we are 3 brothers and running a business. whole business is in my name with me as a proprietor

Everything was running well till now, but business is in trouble since last 2 to 3 years

 

there has been some debt on business and as said above business is in my name so on ONLY ME

 

now my other brothers wants to gets separated from me. 

 

is it possible to divide all debt legally between all 3 brothers? 

 

 
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Hey, you are saying business is in your name by that you mean it was a sole proprietorship or by any chance any partnership deed with you being named as managing partner and your brothers as sleeping partners was there?


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Sanjay, thank you for prompt reply.

Earlier b4 few years back there was partnership deed between us. But I don't have that in hand

Later we change it to proprietorship. All the debts which is on paper is after proprietorship was created

 
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ha21@rediffmail.com Mumbai : 9820174108

1. Legally, Debts /Liabilities shall be borne ONLY by proprietor of Firm.  This depends on how the business accounts are shown for Income Tax Returns and other statutory compliances & return filings.

Keep Smiling .... Hemant Agarwal 
VISIT:  www.chshelpforum.com


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subregistrar/supdt.(retired)

When a firm is converted into proprietorship then that proprietor shall bear the gain or loss.  


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Okay........understood, what I said that is not possible. 

Just finding last ray of hope.......i understand this is also not possible, but just last question.........if my brothers agree to take the responsibility of debts of their share on papers legally, then also technically ONLY I will be responsible for full debt......right? 

 
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ha21@rediffmail.com Mumbai : 9820174108

Originally posted by : HG
Okay........understood, what I said that is not possible. 

Just finding last ray of hope.......i understand this is also not possible, but just last question.........if my brothers agree to take the responsibility of debts of their share on papers legally, then also technically ONLY I will be responsible for full debt......right? 

 

1. The solution is that everybody with mutual consent executes a registered "Settlement Deed" with strategic & indemnity clauses, undertaking their Liabilities & Assets.

Keep Smiling .... Hemant Agarwal
VISIT:  www.chshelpforum.com


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Advocate

What ever it is if it is  a proprietorship firm then the proprietor only the sole responsible person  

 
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