However, as I'll explain below, the main reason members of New Hampshire LLCs formed under the current act should make "Section 5 elections" to be covered by the new act in 2013, rather than waiting for mandatory coverage in 2014, is that the pick-your-partner provisions and charging order provisions are so much stronger in the new act than those in the current act.
A charging order was placed on the property after Mr Soutter was brought before Chester County Court in November 2001 by Phil Butterworth who claimed nine months unpaid rent on the property which he later bought from him.
In many instances, the only remedy available to an LP's creditors may be a charging order entitling the creditor to receive distributions (if distributions are made by the GP) that would otherwise go to the debtor-partner.
Of critical importance-if the CPA spouse is ever sued-is that a successful creditor would be entitled only to a "charging order." This entitles the creditor to receive only the distribution (if any) that the debtor-spouse would receive as the general or limited partner; the order doesn't give the creditor any right to partnership assets or a voice in management or control.