Michigan Compiled Laws

Mich. Comp. Laws § 450.4507 (2026)

Charging membership interest with payment of judgment; rights of judgment creditor; rights and powers of member; charging order as lien on membership interest; section as exclusive remedy.

✓ current as of July 2026

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MICHIGAN LIMITED LIABILITY COMPANY ACT

Act 23 of 1993

450.4507 Charging membership interest with payment of judgment; rights of judgment creditor; rights and powers of member; charging order as lien on membership interest; section as exclusive remedy.

Sec. 507.

(1) If a court of competent jurisdiction receives an application from any judgment creditor of a member of a limited liability company, the court may charge the membership interest of the member with payment of the unsatisfied amount of judgment with interest.

(2) If a limited liability company is served with a charging order and notified of the terms of that order, then to the extent described in the order, the member's judgment creditor described in the order is entitled to receive only any distribution or distributions to which the judgment creditor is entitled with respect to the member's membership interest.

(3) This act does not deprive any member of the benefit of any exemption laws applicable to the member's membership interest.

(4) Unless otherwise provided in an operating agreement or admitted as a member under section 501, a judgment creditor of a member that obtains a charging order does not become a member of the limited liability company, and the member that is the subject of the charging order remains a member of the limited liability company and retains all rights and powers of membership except the right to receive distributions to the extent charged.

(5) A charging order is a lien on the membership interest of the member that is the subject of the charging order. However, a person may not foreclose on that lien or on the membership interest under this act or any other law, and the charging order is not an assignment of the member's membership interest for purposes of section 505(4).

(6) This section provides the exclusive remedy by which a judgment creditor of a member may satisfy a judgment out of the member's membership interest in a limited liability company. A court order to which a member may have been entitled that requires a limited liability company to take an action, provide an accounting, or answer an inquiry is not available to a judgment creditor of that member attempting to satisfy a judgment out of the member's membership interest, and a court may not issue an order to a judgment creditor.

History: 1993, Act 23, Eff. June 1, 1993 ;-- Am. 2010, Act 290, Imd. Eff. Dec. 16, 2010

Notes of Decisions

Cited in 9 cases (7 in the last 5 years), 2015–2025 · leading case: In re Dzierzawski, 528 B.R. 397 (Bankr. E.D. Mich. 2015).

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In re Dzierzawski, 528 B.R. 397 (Bankr. E.D. Mich. 2015). · cites it 19× “Under that statute, Mich. Comp. Laws § 450.4507 , a judgment creditor of a member of an LLC is limited to obtaining a charging order and lien against the membership interest of the judgment debt- or.”

JPMorgan Chase Bank, N.A. v. Larry Winget, 942 F.3d 748 (6th Cir. 2019). “See Mich. Comp. Laws § 450.4507 . Chase has a judgment allowing it to recover from the trust property.”

Alter Domus (US) LLC v. Winget (E.D. Mich. 2024). · cites it 16× “” Mich. Comp. Laws § 450.4507 (6). A member’s interest in an LLC is an asset that may be available to satisfy a judgment.”

Alter Domus (US) LLC v. Winget (E.D. Mich. 2025). · cites it 7× “Mich. Comp. Laws § 450.4507 (6). It points out that the charging order allows the Agent “to receive only any distribution or distributions to which the judgment creditor is entitled with respect to the member’s membership interest,” Mich.”

JPMorgan Chase Bank, N.A. v. Larry Winget (6th Cir. 2022). · cites it 2× “See Mich. Comp. Laws § 450.4507 (1)–(2). But before Chase could do so, Winget - 11 - Case No.”

Alter Domus (US) LLC v. Winget (E.D. Mich. 2023). · cites it 2× “And it contends that said distributions violated the Michigan LLC Act, Mich. Comp. Laws § 450.4507 (1), because they made JVIS insolvent.”

JPMorgan Chase Bank, N.A. v. Winget (E.D. Mich. 2023). “Laws § 450.4507 (6). The section that “applies to satisfaction of a judgment against a member of an LLC.”

Alter Domus (US) LLC v. Winget (E.D. Mich. 2024). “” § 450.4507(4) (emphasis added). JVIS alleges no facts identifying Alter Domus as a member; in fact, it alleges that the Winget Trust is its only member.”

LaJeff Lee-Percy Woodberry (Bankr. E.D. Mich. 2021). “Specifically, Debtor and Yumi argue that the fees were not necessary or reasonable on the grounds that (a) the work completed by C&W Financial was prohibited by the Michigan Limited Liability Act, MCL 450.4507, (b) the chapter 7 Trustee knew before employing C&W Financial that…”

— Mich. Comp. Laws § 450.4507(2) — 1 case

Alter Domus (US) LLC v. Winget (E.D. Mich. 2024). “” Mich. Comp. Laws § 450.4507 (6). A member’s interest in an LLC is an asset that may be available to satisfy a judgment.”

— Mich. Comp. Laws § 450.4507(4) — 1 case

— Mich. Comp. Laws § 450.4507(6) — 2 cases

In re Dzierzawski, 528 B.R. 397 (Bankr. E.D. Mich. 2015). “Under that statute, Mich. Comp. Laws § 450.4507 , a judgment creditor of a member of an LLC is limited to obtaining a charging order and lien against the membership interest of the judgment debt- or.”

Alter Domus (US) LLC v. Winget (E.D. Mich. 2024). “” Mich. Comp. Laws § 450.4507 (6). A member’s interest in an LLC is an asset that may be available to satisfy a judgment.”

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