50-73.108 - Partner's transferable interest subject to charging order. - Virginia Statutes

§ 50-73.108. Partner's transferable interest subject to charging order.

A. On application by a judgment creditor of a partner or of a partner'stransferee, a court having jurisdiction may charge the transferable interestof the judgment debtor to satisfy the judgment. To the extent so charged, thejudgment creditor has only the right to receive any distribution ordistributions to which the judgment debtor would otherwise have been entitledin respect of the interest.

B. A charging order constitutes a lien on the judgment debtor's transferableinterest in the partnership.

C. This chapter does not deprive a partner or a partner's assignee of a rightunder exemption laws with respect to the judgment debtor's interest in thepartnership.

D. The entry of a charging order is the exclusive remedy by which a judgmentcreditor of a partner or of a partner's transferee may satisfy a judgment outof the judgment debtor's transferable interest in the partnership.

E. No creditor of a partner or of a partner's assignee shall have any rightto obtain possession of, or otherwise exercise legal or equitable remedieswith respect to, the property of the partnership.

(1996, c. 292; 2006, c. 912.)