What is a potential consequence if partners fail to settle a $40,000 bill after dissolution?

If partners fail to settle a $40,000 bill after the dissolution of their partnership, they may face personal liability for the debts incurred by the partnership. This is because, in many jurisdictions, including Arkansas, partners are generally personally liable for the obligations of the partnership that arise during its existence. Even after a partnership has been dissolved, partners can still be held responsible for outstanding debts that were incurred while the partnership was active.

In a partnership structure, unless there are specific agreements that limit liability or designate certain partners to handle specific debts, all partners are usually jointly and severally liable for the partnership's obligations. Therefore, if the partnership does not settle the bill, creditors can pursue any of the partners individually to recover the owed amount, leading to personal financial consequences for them.

This underscores the importance for partners to settle all debts before the formal dissolution process is complete to avoid personal liability for partnership debts.