A limited partnership (LP) is a type of business entity that provides a method to own property while also maintaining control over the management, supervision, and transferability of the ownership of the property interests. Limited partnerships can also be structured in certain ways to protect assets from the reach of creditors.
While a limited partnership does not provide absolute protection from creditors, it does serve to limit the legal extent to which a creditor can lay claim to the assets of the partnership and its partners. LPs add a layer of protection for both the partnership and its partners. Depending on whether the creditor has a claim against an individual partner or against the partnership, there are rules in place that define just what assets are subject to execution.
Generally it is important to note that the LP structure is meant for business purposes, not as a means of avoiding creditors. An experienced creditor’s attorney can usually tell a well-crafted partnership from one that might be ill-conceived or poorly constructed.
Working with an experienced, knowledgeable Arizona creditor’s attorney can help tremendously when evaluating a whether or not to pursue the assets of a limited partnership. If you would like more information about limited partnerships relating to creditors’ rights, or if you need assistance from an attorney, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.