The Charging Orders Practice Guide: Understanding Judgment Creditor Rights Against LLC Members - Jay David Adkisson

The Charging Orders Practice Guide: Understanding Judgment Creditor Rights Against LLC Members Jay David Adkisson ISBN 9781641052641

Limited Liability Companies (LLCs) have become the preferred business entity for American entrepreneurs, now exceeding the annual formation of new corporations. One of the key reasons for their popularity is that LLC membership interests are generally shielded from traditional creditor remedies, such as Writs of Levy, long used against corporate shareholders. Instead, a creditor’s recovery against a debtor’s LLC interest is typically limited to a specialized, often underappreciated remedy known as a “charging order.”

As LLC usage has grown, litigation involving LLC membership interests and charging orders has increased significantly. This trend creates a need for creditors, debtors, non-debtor members, the LLC itself, and even potential third-party buyers at foreclosure sales to quickly understand the legal landscape surrounding charging orders. To address this, the LLCs, Partnerships, and Unincorporated Entities Committee of the ABA Business Law Section presents The Charging Orders Practice Guide, offering both the legal theory behind charging orders and practical guidance for navigating them from all perspectives.

This comprehensive guide covers a wide range of topics, including:

• The history and legal principles underlying charging orders

• Creditor strategies for obtaining and leveraging charging orders to enforce judgments

• Step-by-step procedures for obtaining and enforcing a charging order

• Debtor defenses and strategies to resist charging orders

• Advising LLCs on responding to charging orders

• Special considerations for single-member LLCs

• Handling intra-member disputes involving charging orders

• Charging orders in bankruptcy contexts

• Tax implications from the perspectives of all parties involved

• And much more

Bonus: The appendices provide practical tools, including sample charging order documents and Professor Carter Bishop’s widely cited fifty-state tables summarizing relevant statutes and key case law.

This guide is an essential resource for anyone involved with LLCs and charging orders, offering both the theoretical foundation and actionable insights needed to navigate this complex area of business law.

The Charging Orders Practice Guide: Understanding Judgment Creditor Rights Against LLC Members Jay David Adkisson ISBN 9781641052641, 978-1641052641 & 9781641052658

Author
Jay David Adkisson