Foreclosure and Dissolution Rights of a Member?s Creditors: No Cause for Alarm
Thomas E. Rutledge
Arecent article in this magazine by Elizabeth M. Schurig and Amy P. Jetel entitled The Alarming Potential for Foreclosure and Dissolution by an LLC Member’s Personal Creditors, Prob. & Prop., May/June 2006, at 42, raised the specter that a judgment creditor of a member of a limited liability company (LLC) might apply for a charging order, obtain it, persuade the court to order foreclosure on the membership interest subject to the charging order before the charging order is redeemed, be the...