Charging Orders: How Exclusive is Exclusive?

19 Pages Posted: 19 Nov 2014 Last revised: 2 Dec 2014

See all articles by Marc Lovell

Marc Lovell

University of Illinois; Amer. Assoc. of Law Libraries

Date Written: November 17, 2014

Abstract

Several state LLC, LP and LLP statutes provide charging order protection for these entities which may provide substantial protection from creditors beyond that which available with a corporation. Many of these statutes indicate the charging order is the exclusive remedy available to creditors. Is charging order protection this strong? There are only limited cases on point. Recent case law in this emerging area of judicial development provides a glimpse of how exclusive the charging order currently is. These cases also inform the factors courts look at and approaches a court may take when determining how exclusive the charging order remedy is.

Keywords: LLC, LP, LLP, charging order, exclusive, exclusivity, creditor, protection, corporation, creditors, shield

JEL Classification: K10, K13, K19, K22, K34, K41

Suggested Citation

Lovell, Marc, Charging Orders: How Exclusive is Exclusive? (November 17, 2014). Available at SSRN: https://ssrn.com/abstract=2526543 or http://dx.doi.org/10.2139/ssrn.2526543

Marc Lovell (Contact Author)

University of Illinois ( email )

Mumford Hall
Champaign, IL 61820
United States
217-244-0173 (Phone)

Amer. Assoc. of Law Libraries ( email )

53 W. Jackson, Suite 940
Chicago, IL 60604
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
124
Abstract Views
568
rank
234,676
PlumX Metrics