When Reporting on your SC Commission Compliance Report, please use this code: 1717738ADT

To register for this live teleseminar replay, please click here

About the Teleseminar

A charging order is an order to an LLC or partnership to pay any distributions payable to an LLC member or partner instead to his or her creditor until a debt is satisfied.  Charging orders are frequently used when an LLC member or partner has pledged his or her interest to a creditor and is in default of the loan.  They differ substantially from liens on corporate stock because charging orders do not allow the creditor to foreclose on the LLC or partnership interest, only to claim distributions from the entity.  The creditor does not succeed to any other rights of the LLC member – voting, management, information – and is totally dependent on the entity to decide to make distributions.  This program will provide you with a real-world guide to the uses and limitations of charging orders in transactions and tips on enhancing their effectiveness. 

  • Use and limitations of charging orders in business transactions
  • Differences in rights of a creditor of a corporate shareholder v. the rights of a creditor of a partner/LLC member
  • What does a creditor get with a charging order and what rights does the debtor retain?
  • Tax consequences of charging orders
  • Recent cases involving charging orders – bankruptcy, asset protection, single-member LLCs
  • Charging orders and the race to the bottom
  • Enforcement of one state’s charging order statute in another state
  • What can be done to enhance effectiveness of charging orders? 

About the Speaker

Allen Sparkman is a partner in the Houston and Denver offices of Sparkman Foote, LLP.  He has practiced law for over forty years in the areas of estate, tax, business, insurance, asset protection, and charitable giving.  He has written and lectured extensively on choice-of-entity, charitable giving and estate planning topics.  He is the Colorado reporter for the books "State Limited Partnership Laws" and "State Limited Liability Company Laws," both published by Aspen Law & Business.  He has also served as president of the Rocky Mountain Estate Planning Council.  Mr. Sparkman received his A.B. with honors from Princeton University and his J.D. with high honors from the University of Texas School of Law.

Mandatory MCLE Credit Hours
This seminar qualifies for 1.0 MCLE Credit Hour

(Instruction Level: Intermediate)