jingle rule
Jingle Rule was a common law principle that governed the priority of claims between partnership creditors and the separate creditors of individual partners. Under the rule, creditors had first claim to partnership assets, while the individual creditors of a partner had first claim to that partner’s separate property. If partnership property was insufficient to satisfy partnership debts, partnership creditors could reach individual partners’ assets only after the separate creditors of those partners were fully satisfied.
This approach was criticized as inefficient and unfair as it often left partnership creditors unable to collect from partners’ estates. The rule was abolished with the adoption of the Bankruptcy Reform Act of 1978 and is no longer recognized under the Bankruptcy Code or the Revised Uniform Partnership Act (RUPA). Modern bankruptcy law treats partnership creditors and individual creditors on equal footing, both share proportionally in a partner’s estate when partnership assets are insufficient.
[Last reviewed in October of 2025 by the Wex Definitions Team]
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