Topic Foreclosure TopicsExemption
While foreclosures of charging order liens are very rare (because it rarely improves the creditor's position, and may in fact worsen it), when a creditor does move to foreclose there is often confusion about what happens.
The confusion manifests itself in the creditor (and sometimes the court) thinking that foreclosure is of the entity itself, and not merely the charging order lien. In fact, the purchaser of the interest at the judicial sale merely puts the purchaser into the position of an involuntary assignee, without any management or voting rights, but now the purchaser becomes liable for the Form K-1 distributions of taxable income, i.e., no better rights than before, but now you get to pay tax too.
FORECLOSURE ARTICLES
- 2019.06.24 ... Charging Order Protection Backfires At Judicial Sale In Preservation Holdings
- 2018.07.30 ... Judicial Foreclosure Of An Alleged Single-Member Florida LLC Fails In Saadi
- 2015.02.18 ... Florida Charging Order Foreclosure Of A Nevis LLC In Barber
- 2012.06.22 ... Owner Of Debtor LLC Goes To Jail For Contempt For Interfering With Foreclosure Sale
FORECLOSURE OPINIONS
- DiSalvo Properties, LLC v. Bluff View Commercial, LLC, 2015 WL 3759402 (Mo.App., 2015).
- Earthgrains Baking Co. v. Sycamore Family Bakery, Inc., D.Utah Case No. 09CV523 (Aug. 21, 2015).
- Earthgrains Baking Companies, Inc. v. Sycamore Family Bakery, Inc., 2019 WL 6001940 (D.Utah, Nov. 14, 2019).
- Givens v. National Loan Investors, L.P., 724 So.2d 610 (Fla.App. Dist.5 12/18/1998).
- Hellman v. Anderson, 233 Cal. App. 3d 840, 284 Cal. Rptr. 830 (Cal.App.Dist.3 08/26/1991).
- Herring v. Keasler, 563 S.E.2d 614 (N.C.App. 06/04/2002).
- In re Talbut, 2016 WL 937373 (N.D.Ohio, Slip Copy, 2016).
- Kriti Ripley, LLC v. Emerald Investments, LLC, 2013 WL 3200596 (S.C., June 26, 2013).
- Lauer Construction Inc. v. Schrift, 123 Md.App. 112, 716 A.2d 1096 (Md.Sp.App. 09/02/1998).
- Levy v. Carolinian, LLC, 2014 WL 4347503 (S.C., 2014).
- Macharg v. Macharg, 2016 WL 6777526, 2016 PA Super 254 (Pa.Super., Nov. 16, 2016).
- Madison Hills LTD v. Madison Hills, Inc., 644 A.2d 363 (Conn.App. 06/06/1994).
- Nigri v. Lotz, 453 S.E.2d 780 (Ga.App. 02/01/1995).
- Preservation Holdings, LLC v. Norberg, 2019 IL App (1st) 181136 (June 14, 2019).
- Saadi v. Maroun, 2018 WL 1282325 (M.D.Fla., March 13, 2018).
- Sanders v. Ohmite Holding, LLC, 2011 WL 598436 (Del.Ch., Unpublished, 2011).
- Stewart v. Lanier Park Medical Office Building, Ltd., 578 S.E.2d 572 (Ga.App., 2003).
- Timberland Bank v. Mesaros, 2018 WL 2215463 (Wa.App., May 15, 2018).
- ULLCA 503f Foreclosure of SMLLC Interest
- Webster v. Dalcoma Limited Partnership Four, No. CA2000-11-028 (Ohio App. Dist.12 09/17/2001).
- Wells Fargo Bank v. Barber, 2015 WL 470589 (M.D.Fla., Feb. 4, 2015).