Silent partnership is formed by an agreement by which the silent member invests a certain economic value into the entrepreneur’s enterprise and on the ground of this investment acquires the right to participate in the profit and loss of the entrepreneur. It is a private legal association created for the purpose of making profit, in which the silent member also participates. However, it is an inner company without legal personality, the establishment of which does not create the joint property of its members, but the contribution of silent member rather becomes the property of the entrepreneur. Therefore, it is not possible to open the bankruptcy proceedings against the silent partnership, but it is possible for the bankruptcy proceedings to be opened against either the entrepreneur or the silent member. The paper analyses the legal consequences of opening bankruptcy proceedings against the entrepreneur and its effects on the silent partnership and the silent member, especially regarding the possibility of recovering the contribution of the silent member, as well as the legal consequences that opening of bankruptcy proceedings against the silent member will have on the silent partnership. Furthermore, the paper discusses the question of application of the provisions on the loan substituting the capital on the role of the silent member. In addition to the analysis of the legal consequences of opening bankruptcy proceedings against the entrepreneur and the silent member, the paper also reflects on the manner in which the legal institute of silent partnership is regulated in the legal system of Republic of Austria, given the fact that the regulations regarding the role of the entrepreneur and the silent member in the case of opening the bankruptcy proceedings, as well as the silent partnership in general, largely correspond to the provisions of Croatian law.