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Suppose that Big Bank has a judgment against Sheila Debtor, and Sheila Debtor is a member of Small Company, LLC. Big Bank can seek a charging order that requires Small Company, LLC to pay over to Big Bank any distributions that would otherwise be paid to Sheila until the judgment debt is satisfied.
Does Nevada have charging order protection?
A temporary protection order (a TPO) can usually be issued for up to 45 days. The judge can issue a TPO without notifying the other party first.
What proof do you need for a restraining order in Nevada?
Currently, charging order relief in Nevada is provided as a ereclitors remedy against a debtors ownership interest in either a limited partnership (LP) or limited liability company (LLC).
Can creditors come after your LLC?
A creditor can only get a charging order against a member of an LLC and cannot go after the LLCs assets directly. They must instead obtain a charging order from a court, which is not a preferred remedy for a creditor.
What is a protection order in Nevada?
A protection order is a civil court order that aims to protect a person (the applicant) from harm or harassment by another person (the adverse party).
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Some of the states that offer the strongest charging order protection for LLCs include Delaware, Wyoming, Nevada, and Alaska. These states have laws that limit the ability of creditors to collect from charging orders.
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