The Charging Order Statute
On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the membership interest of the member with payment of the unsatisfied amount of judgment with interest.
Current Issues In Enforcing Judgments Against LLCs
When a creditor obtains a judgment against a debtor, the debtor's assets are sometimes held in membership interests in an LLC, which presents challenges for the creditor seeking recovery. The Uniform LLC Law provided for a charging order in such instances. Although the precise terms of each state's LLC laws vary, some version of the charging order procedure is available in all states.
By
Joseph P. Briggett
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