Court Vacates Charging Order Entered Against Client’s LLC

Partner Andres Gamardo recently secured an order vacating a charging order that had been improperly entered against a client’s limited liability company. A charging order is a legal remedy that allows judgment creditors to intercept distributions from a limited liability company to a debtor.

The firm was retained after the client discovered that the charging order had been entered without notice or an opportunity to participate in the proceeding. In the motion, Gamardo argued that the order violated due process because the company had never been served or given an opportunity to be heard, and that it was improvidently entered because the judgment debtors held no membership interest in the company. The court agreed and vacated the order in full.

If you're facing collection efforts or need help protecting your business, our litigation team can assist you.

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