Topic Information_Rights TopicsInformationRightsDiscovery
The courts have struggled to determine what information that a creditor holding a charging order is entitled to, though usually end up with the correct decision.
This can be fixed by an expanded Comment noting that a creditor as a mere lienholder (or even as a involuntary assignee after foreclosure) has no rights in that capacity against the entity.
However, a creditor normally in judgment enforcement proceedings is entitled to whatever information the debtor receives about the debtor's investment, which would mean information that the debtor receives from the entity, i.e., if the debtor can obtain information from the entity, the debtor must do so and then turn that information over to the creditor pursuant to the creditor's appropriate discovery request or at a debtor's examination. If this information requires particular confidentiality for the entity — say, the D/M is the CFO of the company — then protective orders or the appointment of a receiver would be appropriate.