Joe Perone was a member of Caddy, Shack, & Perone, a general trading partnership. He died and the partnership is being liquidated in a bankruptcy proceeding, but Perone's estate is substantial. The creditors of the partnership are seeking to collect on their claims from Perone's estate. Which of the following statements is true insofar as their claims are concerned?
A. The death of Perone caused a dissolution of the firm, thereby freeing his estate from personal liability.
B. Partnership creditors and Perone's personal creditors are on an equal footing regarding the assets of Perone's estate.
C. The creditors must first proceed against the remaining partners before Perone's estate can be held liable for the partnership's debts.
D. The liability of Perone's estate cannot exceed his capital contribution plus that percentage of the deficit attributable to his capital contribution.
Answer: B. Partnership creditors and Perone's personal creditors are on an equal footing regarding the assets of Perone's estate.
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