Asked by Prabha Karki on May 29, 2024

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The charging-order creditor is a lien creditor and is entitled to receive only the partner's share of the partnership distributions.

Charging-Order Creditor

A creditor's legal right to attach a debtor's interest in an LLC or partnership, as a means to satisfy the debtor's outstanding obligation.

Lien Creditor

A creditor who has a legal right or claim against a debtor's property as security for a debt or charge.

Partnership Distributions

The sharing out of profits, assets, or earnings among the partners of a partnership based on the agreed-upon terms.

  • Recognize the indebtedness results for stakeholders in different partnership frameworks.
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CB
Chaylee BentleyMay 31, 2024
Final Answer :
True
Explanation :
The charging-order creditor is a lien creditor and is entitled to receive only the partner's share of the partnership distributions.