creditor's rights when debtor files for bankruptcy

I do not give legal advice over the web, but I can outline some issue to consider.

1. If the business has assets, you may be able to negotiate purchase of partner's membership interests in exchange for the debt.

2. If partner files chapter 11 or 13, you may receive some (or, more rarely most or all) of the money if his ongoing income is sufficient to pay his debts within the bankruptcy framework. Since the majority of Chapter 13 bankruptcy petitions are dismissed, there is a possibility, the debt will not be discharged.

3. There may be special circumstances (such as fraud) which prevent a debt from being dischargeable in bankruptcy.

4. You have not mentioned security, but secured debts get priority treatment. Depending on the circumstances, it may be possible to secure part or all of the debt or even get partner to reaffirm it so that it survives the bankruptcy (this can be risky as bankruptcy petitioners can reaffirm a debt and then withdraw their agreement).

5. The bad news is that your question probably answers itself. If you have to ask about collectibility, you probably already have some idea that partner is not going to be able to pay.

You should see an attorney to review your options. If you cannot afford an attorney, you may be able to find an attorney who give you a reduced fee ($20) initial consult using the Wisconsin Bar Lawyer Referral and Information Service at www.legalexplorer.com/lawyer/lawyer.asp