Using Charging Orders to Collect from a Debtor’s LLC in Illinois
Oct. 10, 2025
A charging order is a court order that directs an LLC to pay the debtor’s distributions (profits or dividends) directly to the creditor instead of to the debtor.
Identify the LLC/partnership.
● First, you need to know that the debtor owns an interest in a limited liability company (LLC) or partnership.
Request a charging order.
● You file a motion with the court asking it to issue a charging order against the debtor’s ownership interest.
Court issues the order.
● The order requires the LLC to redirect any distributions that would go to the debtor directly to you until the judgment is satisfied.
Effect of the order.
● You don’t get voting rights or management control of the LLC.
● But you do become a sort of “assignee of distributions” first in line when profits are paid out.
A charging order is the go-to remedy for seizing value from a debtor’s LLC or partnership interest. You don’t get control of the company, but you cut off the debtor’s ability to pocket distribution.