RECOVERY INSIGHT

Charging orders and interests in debtor entities

High-level notes on charging orders as one tool against interests in partnerships or companies.

Charging orders can, in some jurisdictions, attach a debtor’s interest in a partnership or company. They do not always allow direct seizure of the entity’s underlying operating assets.

Their effectiveness depends on local law, the entity type and whether distributions or transferable interests actually exist. They are not universal solvent for hidden assets.

Pre-enforcement tracing should still locate bank accounts, receivables and real property. Charging orders are one option among several.

Obtain jurisdiction-specific advice before assuming a charging order will pressure a particular debtor structure. Local procedure and entity type control whether the tool is even available.


Disclaimer: This article provides general information only. It is not legal advice and does not guarantee recovery in any matter.

Charging orders and interests in debtor entities | Harven Rich Law Firm