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.

2 minute read June 01, 2018 at 12:05 AM
By
Joseph P. Briggett
Current Issues In Enforcing Judgments Against LLCs

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.

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