A creditor's right against a member's interest in an LLC is limited to a(n) _______ order, and the creditor with such an order has only the rights of an assignee of an interest in an LLC.
A) dissolution
B) compliance
C) assignment
D) charging

Question

Quizplus · Accepted Answer

A creditor's right against a member's interest in an LLC is limited to a charging order, which is a court-ordered right to receive any distributions that would otherwise be paid to the debtor-member. The creditor with such an order has only the rights of an assignee of an interest in the LLC, meaning they cannot participate in the management of the business or force a distribution of assets. Therefore, choice D, charging, is the best answer.

A Creditor's Right Against a Member's Interest in an LLC