This blog site focuses primarily on sophisticated issues in the asset protection arena. I address new developments, strategies and legal issues. However, I have never used this blog to discuss the fear, anxiety and depression that many new clients exhibit when I first meet them and how attorneys should deal with this.
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Client presents with a single member limited liability company. The emerging case law is that single member LLC's are not entitled to charging order protection. This makes sense since the original purpose of the charging order remedy was to protect partners in a partnership from being forced to accept a bankrupt partner's creditors as their new partner. However, since a single member does not face that risk, there is no need for the charging order remedy and courts in several states have held that creditors can foreclose the interest and sell the LLC's assets to pay debts. Although no case in Michigan has yet held that creditors of a single member LLC can foreclose on the assets of the LLC to pay the member's debts, it is this author's opinion that it is only a matter of time and Michigan asset protection planners need to figure out how to protect the single member's membership interest from creditor claims.
Continue reading "How to Solve the Single Member LLC Dilemma " »
Oct 7, 10 08:28 AM Asset Protection Planning-the Client's Mental State This blog site focuses primarily on sophisticated issues in the asset protection arena. I address...
Oct 5, 10 02:20 PM How to Solve the Single Member LLC Dilemma Client presents with a single member limited liability company. The emerging case law is that...
