FL H0253

Charging orders are the sole and exclusive remedy for judgment creditors to satisfy judgments against members or assignees of multimember limited liability companies.

For single-member LLCs, a judgment creditor may seek foreclosure sale of the LLC interest if distributions under a charging order will not satisfy the judgment within a reasonable time.

Upon foreclosure sale of a single-member LLC interest, the purchaser obtains the entire membership interest and becomes a member, while the original member ceases membership.

Foreclosure remedies are prohibited and not available against multimember LLC interests, which remain subject only to charging order liens.

The amendment applies retroactively and does not limit secured creditor rights, fraudulent transfer laws, equitable principles (alter ego, equitable lien, constructive trust), or the court's continuing enforcement jurisdiction.