Will bankruptcy of a limited partner mandate the dissolution of the partnership?

My mother and her brother are 50/50 partners in a corporation that owns rental housing units. My uncle is the General Partner and my mother is limited. If the limited partner were to file bankruptcy will that mandate the dissolution and liquidation of the partnership? My uncle is using his power and discretion as the GP to limit my mother’s monthly income from the partnership. Although the expense he has incurred each month could be con strewed as legitimate. He and my mother both had legal representation to try to resolve the situation. My uncle paid his legal fees through the company.

Asked on March 7, 2012 under Business Law, Hawaii


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