{"data":{"id":"us-dc/d.c.-code-29-805.03","jurisdiction":"us-dc","citation":"D.C. Code § 29-805.03","heading":"Charging order.","body":"(a)\nOn application by a judgment creditor of a member or transferee, the Superior Court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. Except as otherwise provided in subsection (f) of this section, a charging order constitutes a lien on a judgment debtor’s transferable interest and requires the limited liability company to pay over to the person to which the charging order was issued any distribution that would otherwise be paid to the judgment debtor.\n\n(b)\nTo the extent necessary to effectuate the collection of distributions pursuant to a charging order in effect under subsection (a) of this section, the Superior Court may:\n(1)\nAppoint a receiver of the distributions subject to the charging order, with the power to make all inquiries the judgment debtor might have made; and\n(2)\nMake all other orders necessary to give effect to the charging order.\n\n(c)\nUpon a showing that distributions under a charging order will not pay the judgment debt within a reasonable time, the Superior Court may foreclose the lien and order the sale of the transferable interest. Except as otherwise provided in subsection (f) of this section, the purchaser at the foreclosure sale shall obtain the transferable interest, shall not thereby become a member, and shall be subject to § 29-805.02.\n\n(d)\nAt any time before foreclosure under subsection (c) of this section, the member or transferee whose transferable interest is subject to a charging order under subsection (a) of this section may extinguish the charging order by satisfying the judgment and filing a certified copy of the satisfaction with the Superior Court.\n\n(e)\nAt any time before foreclosure under subsection (c) of this section, a limited liability company or one or more members whose transferable interests are not subject to the charging order may pay to the judgment creditor the full amount due under the judgment and thereby succeed to the rights of the judgment creditor, including the charging order.\n\n(f)\nIf a court orders foreclosure of a charging order lien against the sole member of a limited liability company:\n(1)\nThe court shall confirm the sale;\n(2)\nThe purchaser at the sale obtains the member’s entire interest, not only the member’s transferable interest;\n(3)\nThe purchaser thereby becomes a member; and\n(4)\nThe person whose interest was subject to the foreclosed charging order is dissociated as a member.\n\n(g)\nThis chapter shall not deprive any member or transferee of the benefit of any exemption laws applicable to the member’s or transferee’s transferable interest.\n\n(h)\nThis section provides the exclusive remedy by which a person seeking to enforce a judgment against a member or transferee may, in the capacity of judgment creditor, satisfy the judgment from the judgment debtor’s transferable interest.","path":["Title 29. Business Organizations. [Enacted title]","Chapter 8. Limited Liability Companies.","Subchapter V. Transferable Interests and Rights of Transferees and Creditors."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/29-805.03","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"8dea94544b449ef2e3e52014a0785d3b01ef639f1e208bff6fdef2fbbcca843c","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-29-805.02","next":"us-dc/d.c.-code-29-805.04"},"notice":"GroundRules: Original legal text. Not legal advice."}