If a partnership is a debtor under the Bankruptcy Code and partnership property is insufficient to pay all the claims against the partnership,the trustee in bankruptcy must first seek recovery of the deficiency from the estates of the bankrupt partners,and then may seek recovery from general partners who are not bankrupt.

Question

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Under the Bankruptcy Code, the trustee can seek recovery directly from the general partners who are personally liable for the partnership's debts without first seeking recovery from the estates of the bankrupt partners.

If a Partnership Is a Debtor Under the Bankruptcy Code