Colo. Rev. Stat. » Title 7
Colorado Revised Statutes

Colo. Rev. Stat. § 7-80-703 (2024)

Rights of creditor against a member

✓ C.R.S. 2024: the 2025 and 2026 sessions are not included
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On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the membership interest of the member with payment of the unsatisfied amount of the judgment with interest thereon and may then or later appoint a receiver of the member's share of the profits and of any other money due or to become due to the member in respect of the limited liability company and make all other orders, directions, accounts, and inquiries that the debtor member might have made, or that the circumstances of the case may require. To the extent so charged, except as provided in this section, the judgment creditor has only the rights of an assignee or transferee of the membership interest. The membership interest charged may be redeemed at any time before foreclosure. If the sale is directed by the court, the membership interest may be purchased without causing a dissolution with separate property by any one or more of the members. With the consent of all members whose membership interests are not being charged or sold, the membership interest may be purchased without causing a dissolution with property of the limited liability company. This article shall not deprive any member of the benefit of any exemption laws applicable to the member's membership interest.

Source: L. 90: Entire article added, p. 433, § 1, effective April 18. L. 97: Entire section amended, p. 1505, § 19, effective June 3. L. 2006: Entire section amended, p. 862, § 31, effective July 1.

7-80-704. Deceased or incompetent members who are individuals - dissolved or terminated members who are legal entities. (1) If a member who is an individual dies or a court of competent jurisdiction appoints a guardian or general conservator for the member, the member's executor, administrator, guardian, conservator, or other legal representative may exercise all of the powers of an assignee or transferee of the member.

(2) If a member other than an individual is dissolved or terminated, the legal representative or successor of the member may exercise all of the powers of an assignee or transferee of the member.

(3) (Deleted by amendment, L. 2006, p. 862, § 32, effective July 1, 2006.)

Source: L. 90: Entire article added, p. 433, § 1, effective April 18. L. 94: Entire section amended, p. 718, § 26, effective July 1. L. 2004: (1) amended, p. 1461, § 187, effective July 1. L. 2006: (2) and (3) amended, p. 862, § 32, effective July 1.

Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 2003–2024 · leading case: McClure v. JP Morgan Chase Bank NA, 2015 COA 117, 395 P.3d 1123.
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McClure v. JP Morgan Chase Bank NA, 2015 COA 117, 395 P.3d 1123. · cites it 5× “Merits A Whether the Arizona Charging Orders Were Enforceable ¶ 8 A charging order may be issued under section 7-80-703, C.R.S. 2014, against the membership interest of a judgment debt- or who is also a member of a limited liability company.”
JPMorgan Chase Bank, N.A. v. McClure, 2017 CO 22, 393 P.3d 955. · cites it 2× “§ 29-655 (A) (2016); § 7-80-703, C.R.S. (2016). Accordingly, the judgment creditor has no right to compel a distribution or otherwise participate in the LLC’s management.”
Bartch v. Barch, 111 F. 4th 1043 (10th Cir. 2024). · cites it 6× “See Colo. Rev. Stat. § 7-80-703 . 6 Appellate Case: 23-1211 Document: 010111086218 Date Filed: 07/29/2024 Page: 7 Colorado law includes an additional relevant procedure: Under C.”
In re Albright, 291 B.R. 538 (Bankr. D. Colo. 2003). · cites it 2× “On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the membership interest of the member with payment of the unsatisfied amount of the judgment with interest thereon and may then or later appoint a receiver of the…”
Weinstein v. Colborne Foodbotics, LLC, 2013 CO 33, 302 P.3d 263. “§ 7-80-703. An LLC may be dissolved in a proceeding by a creditor if the LLC is insolvent and the creditor has obtained a judgment against it or the LLC has admitted that the creditor's claim is due.”
McClure v. JP Morgan Chase Bank NA, 2015 COA 117. · cites it 5× “Whether the Arizona Charging Orders Were Enforceable ¶8       A charging order may be issued under section 7-80-703, C.R.S. 2014, against the membership interest of a judgment debtor who is also a member of a limited liability company.”
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