Friday, December 1, 2017

Texas Case Shows Why Single Member LLCs Not Good For Asset Protection

COURT OF APPEALS SECOND DISTRICT OF TEXAS FORT WORTH NO. 02 - 16 - 00213 - CV JULIA TERESA HECKERT APPELLANT V. CLYDE L. HECKERT, JR . APPELLEE  MEMORANDUM OPINION 

This appeal and cross - appeal involve the propriety of a turnover order . In her appeal, Julia Teresa Heckert (Teresa) –– who obtained the turnover order against her former husband Clyde L. Heckert , Jr......... 

"and (3) the only way his nonexempt interests in a sole - member limited liability company and a limited partnership may be reached by a judgment creditor is by charging order. We reverse the part of the trial court’s order requiring Clyde to turn over his Vanguard account, but we affirm the remainder of the trial court’s order ".

Additional Info From Jay Adkisson:

Charging Order Not Exclusive Remedy For SMLLC Interest In Heckert
The Texas Court of Appeals has held that a debtor/member's interest in a single-member LLC and partnership may be subject to a turnover order, despite language in the Texas statutes which says that the charging order is the "exclusive remedy". 
Nov 23, 2017
FDCPA Overrides State Law Limitations Period And Charging Order Exclusivity In Wilhite
The U.S. District Court for the District of Colorado has held that the Federal Debt Collection Practices Act (FDCPA) overrides contrary state law as to limitations periods for fraudulent transfers and charging order exclusivity.
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