Enforcing Judgments With Charging Orders: Redirecting Partnership and LLC Profits to Judgment Creditors

A live 90-minute CLE video webinar with interactive Q&A


Wednesday, September 29, 2021 (in 4 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926
Course Materials

This CLE course will offer commercial litigators the tools needed to exercise the exclusive remedy available for obtaining and monetizing liens against the judgment debtor's partner or member interests in partnerships and limited liability companies--charging orders. The program will discuss how they are obtained, choice of law issues, procedural requirements, discovery, foreclosure and redemption of interests, and the effect of taxes and bankruptcy on enforcement.

Description

Many judgment debtors hold substantial and valuable rights to receive profits and distributions from partnerships or LLCs of which they are members. To enforce its judgment, the judgment creditor must obtain a charging order that creates a lien against the debtor/member's interest and redirect payments intended for the debtor to the judgment creditor. However, obtaining a charging order is often a confusing process due in no small part to the fact that this unique remedy is poorly understood by litigants and the courts alike.

Charging orders are also rife with misconceptions, such as that they are the only method by which a creditor may satisfy its judgment against an interest in an LLC or partnership (it is not), or that foreclosure of the charging interest allows a creditor to access the assets of the LLC (it does not). There are also peculiar problems and opportunities that arise in the context of a single-member LLC.

Listen as our experienced panel discusses strategies for enforcing and satisfying civil judgments against the interests of the judgment debtor in partnerships and LLCs.

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Outline

  1. History and legal theory of charging orders
  2. Creditor's strategies and tactics for obtaining charging orders and using them for maximum effect to enforce judgments
  3. Debtor defenses to a charging order
  4. Counseling an LLC on how to respond to a charging order
  5. Intra-member disputes involving charging orders
  6. The charging order in bankruptcy
  7. Tax issues as seen through the eyes of all the parties to charging order litigation

Benefits

The panel will review these and other essential issues:

  • Can creditors prevent the devaluation of partner/member interests?
  • How do entities and their members/partners try to circumvent charging orders?
  • Are there any other methods for levying on member/partner interests?
  • What are best strategies for creditors to obtain charging orders and use them for maximum effect?

Faculty

Adkisson, Jay
Jay D. Adkisson

Managing Partner
Adkisson Pitet

Mr. Adkisson is a managing partner of Adkisson Pitet LLP and is admitted to practice in Arizona, California, Nevada,...  |  Read More

Williams, John L.
John L. Williams

Partner
The Williams Law Firm

Mr. Williams is experienced in negotiating transactions, drafting documents, and advocating for clients in all Delaware...  |  Read More

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Cannot Attend September 29?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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