How can disputes over outstanding debts in a partnership be resolved?

Mediation and negotiation are effective methods for resolving disputes over outstanding debts in a partnership because they promote open communication and collaboration between the parties involved. These processes allow partners to discuss their differences in a constructive manner, aiming to reach a mutually acceptable solution without resorting to litigation. Mediation, in particular, involves a neutral third party who facilitates the discussion and helps guide the partners toward a resolution, while negotiation can be more informal and allows partners to work through issues directly.

In contrast, relying solely on court orders can be a more rigid and less flexible approach, possibly resulting in increased animosity and further deterioration of the partnership relationship. Dissolving the company again may not address the underlying financial disputes and could lead to additional complications, while verbal agreements may lack the enforceability and clarity needed to resolve debts effectively. Thus, mediation and negotiation present themselves as the best resolution strategies for disputes over outstanding debts.