September 20, 2017
The use of a limited liability company can provide what is known as charging order protection against creditors of individual members who have assets inside the LLC. Continue reading
Tag: charging order
The Double-Whammy’d Charging Order: Forget About Protecting the Assets in that LLC
August 21, 2017
Once again, the confidence one may have in relying on an LLC created in the United States as being the untouchable storehouse where assets can be safely tucked away, is misplaced. In the new ruling in the case of Peach REO, LLC v. Rice, Peach REO, LLC sought to attach the LLC interests that Malcolm Rice owned in various LLCs (in Tennessee, Mississippi and Delaware). This attachment of the LLCs was through a charging order. Continue reading
Cautionary Tale: Charging Order Upon Death of Debtor, Losing All the Limited Liability Company Asset Protection Benefits
July 20, 2017
The Delaware Chancery Court has now ruled on the continuing asset protection aspect of a charging order against assets in a 49% owned LLC. In that court case, a charging order had been obtained by a creditor who wanted to seize the assets inside of the LLC. Continue reading
JPMorgan Chase Bank v. McClure (2017 Colorado Supreme Court Ruling): Are Non-Colorado LLCs Now More Protective than Colorado LLCs for Colorado Residents?
July 12, 2017
In the recent Colorado Supreme Court decision (JPMorgan Chase Bank v. McClure, 2017 CO 22, 2017 WL 1321334 (Colo., April 10, 2017), the Court ruled that in order to enforce a charging order against an LLC, the creditor must bring the action to the jurisdiction where the targeted LLC was formed. Continue reading
Asset Protection Put to the Test—Issue—Is an LLC Enough Protection for my Assets—Don’t Count on it!
June 8, 2017
In the bankruptcy case of In re Cleveland, a debtor found just how non-protective a limited liability company (LLC) one-member can be in the face of creditors. The court ruled that such an LLC provides absolutely no protection from the LLC-owner’s creditors. Continue reading
Nevis Offers Enhanced LLC Asset Protection “Brick Wall” Law
May 3, 2017:
Over the recent years, Nevis has added barriers to those creditors who seek to seize assets from targeted debtors. For starters, in order for a creditor to lay claim to assets in a Nevis LLC, the creditor must prove beyond a reasonable doubt (a very tough hurdle to overcome in a Nevis court) that the debtor, at the time he transferred the assets to the Nevis LLC, (1) intended to defraud that creditor and (2) was rendered insolvent by the transfer to the LLC, considering all of his assets including the full fair market value of the LLC interest. Continue reading