However, the Court did not order Clyde to turn over his interest in a Fidelity Investment account. Clyde quite correctly pointed out that Texas statutory law provides that a charging order is the "exclusive remedy" to collect on a debtor's partnership interests or LLC interests. A charging order does not, however, transfer the ownership of the debtor/member's interest to the creditor, only the right to distributions. ANALYSISThere is a split of authority as to how a single-member LLC ("SMLLC") should be treated for charging order purposes. The approach in this case makes the most sense, which is that the purpose of a charging order is to protect the non-debtor members from having their business interfered with, but if there are no non-debtor members then the charging order should not be the exclusive remedy.

Source: Forbes November 23, 2017 16:30 UTC