Attempting to collect against ownership interests of an Arizona LLC or LP?

"best Arizona law firm"In Arizona, the general rule is that the money or property of an Arizona limited liability company (“LLC”) or limited partnership (LP) cannot be taken by creditors to pay off the personal debts or liabilities of the entity’s owners.  There are exceptions to this rule.  Judgment creditors of owners of interests in a LLC or LP can get a charging order.  A charging order is a court-ordered remedy that only entitles the holder of the order to temporarily receive distributions from an entity in which a judgment debtor has an interest until the judgment has been satisfied.  A creditor who holds a charging order is not entitled to participate in the management of the entity or compel distributions.

While the LLC and LP are the most common types of entities where creditors obtain a charging order, entities such as a limited liability partnership (LLP) and limited liability limited partnership (LLLP) may also authorize creditors to obtain charging orders.

If you need assistance obtaining a charging order or other collection methods, contact the attorneys at Windtberg & Zdancewicz, PLC today.  They are experienced in creditor’s rights and how to effectively pursue judgment debtors.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.


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