Texas Charging Order Statutes And Opinions
State StateTexas
Texas Charging Order Statutes
- GENERAL PARTNERSHIPS: Bus. Orgs Code § 152.308. Partner’s Partnership Interest Subject to Charging order
- LIMITED PARTNERSHIPS: Bus. Orgs Code § 153.256. Partner’s Partnership Interest Subject to Charging order
- LIMITED LIABILITY COMPANIES: Bus. Orgs Code § 101.112. Member’s Membership Interest Subject to Charging Order
GENERAL PARTNERSHIPS
Texas Business Organizations Code § 152.308. Partner’s Partnership Interest Subject to Charging order
(a) On application by a judgment creditor of a partner or of any other owner of a partnership interest, a court having jurisdiction may charge the partnership interest of the judgment debtor to satisfy the judgment.
(b) To the extent that the partnership interest is charged in the manner provided by Subsection (a), the judgment creditor has only the right to receive any distribution to which the judgment debtor would otherwise be entitled in respect of the partnership interest.
(c) A charging order constitutes a lien on the judgment debtor’s partnership interest. The charging order lien may not be foreclosed on under this code or any other law.
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a partner or of any other owner of a partnership interest may satisfy a judgment out of the judgment debtor’s partnership interest.
(e) This section does not deprive a partner or other owner of a partnership interest of a right under exemption laws with respect to the judgment debtor’s partnership interest.
(f) A creditor of a partner or of any other owner of a partnership interest does not have the right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the partnership.
LIMITED PARTNERSHIPS
Texas Business Organizations Code § 153.256. Partner’s Partnership Interest Subject to Charging order
(a) On application by a judgment creditor of a partner or of any other owner of a partnership interest, a court having jurisdiction may charge the partnership interest of the judgment debtor to satisfy the judgment.
(b) To the extent that the partnership interest is charged in the manner provided by Subsection (a), the judgment creditor has only the right to receive any distribution to which the judgment debtor would otherwise be entitled in respect of the partnership interest.
(c) A charging order constitutes a lien on the judgment debtor’s partnership interest. The charging order lien may not be foreclosed on under this code or any other law.
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a partner or of any other owner of a partnership interest may satisfy a judgment out of the judgment debtor’s partnership interest.
(e) This section does not deprive a partner or other owner of a partnership interest of a right under exemption laws with respect to the judgment debtor’s partnership interest.
(f) A creditor of a partner or of any other owner of a partnership interest does not have the right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited partnership.
LIMITED LIABILITY COMPANIES
Texas Business Organizations Code § 101.112. Member’s Membership Interest Subject to Charging Order
(a) On application by a judgment creditor of a member of a limited liability company or of any other owner of a membership interest in a limited liability company, a court having jurisdiction may charge the membership interest of the judgment debtor to satisfy the judgment.
(b) If a court charges a membership interest with payment of a judgment as provided by Subsection (a), the judgment creditor has only the right to receive any distribution to which the judgment debtor would otherwise be entitled in respect of the membership interest.
(c) A charging order constitutes a lien on the judgment debtor’s membership interest. The charging order lien may not be foreclosed on under this code or any other law.
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or of any other owner of a membership interest may satisfy a judgment out of the judgment debtor’s membership interest.
(e) This section may not be construed to deprive a member of a limited liability company or any other owner of a membership interest in a limited liability company of the benefit of any exemption laws applicable to the membership interest of the member or owner.
(f) A creditor of a member or of any other owner of a membership interest does not have the right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited liability company.
Texas Charging Order Opinions
- Bran v. Spectrum MH, LLC, 2023 WL 5487421 (Tex.App., 14th Distr., August 24, 2023).
- Devoll v. Demonbreun, 2016 WL 4538805 (Tex.App., Aug. 31, 2016).
- Gillet v. ZUPT, LLC, 2017 WL 716633 (Tex.App. 14th Distr., Feb. 23, 2017).
- Heckert v. Heckert, 2017 WL 5184840 (Tex.App., Nov. 9, 2017).
- In re Canada, Bk.N.D.Tex. Case No. 23-30568 (Dec. 5, 2023).
- In re DeVries, 2014 WL 4294540 (Bk.N.D.Tex., 2014).
- In re Wilson, 2014 WL 3700634 (Bk.N.D. Tex., 2014).
- Jack M. Sanders Family Limited Partnership v. Roger T. Fridholm Revocable Living Trust, 2014 WL 1603546 (Tex.App.Distr. 1, 2014).
- Jiao v. Xu, 2022 WL 764997 (5th Cir., March 11, 2022).
- Klinek v. Luxeyard, Inc., 2023 WL 4497063 (Tex.App. 14th Distr., July 13, 2023).
- Mexico Foods Holdings, LLC v. Nafal, 2023 WL 6284705 (Tex.App. Dallas, Sept. 27, 2023).
- Pajooh v. Royal West Investments LLC, Series E, 2017 WL 1173892 (Tex.App., March 30, 2017).
- Spates v. Office of the Attorney General, 2016 WL 354417 (Tex.App.14th Dist., Jan. 28, 2016).
- Thomas v. Hughes, 2022 WL 620240 (5th Cir., March 3, 2022).