Assignment Essay Example | Topics and Well Written Essays - 500 words - 64

Assignment - Essay Example These rights normally depend on the reason for which this debt came about as well as the terms that have been agreed upon between the two parties to the debt (Twomey & Jennings, 2010). Their rights tend to also deal with the rights of creditors against other creditors. These legislations determine which of several creditors have the right to a particular debtor’s property in cases whereby more than one creditor lays a claim on a given debtor’s property. These creditors may be divided those who perfected their own interest by establishing a suitable public record of the said debt and any other property that is claimed as collateral for this debt and also by if the given debt came to be as a purchase money security interest (Twomey & Jennings, 2010). Creditors may request a court of law to set aside a fraudulent conveyance that is designed to put the property owned by the debtors out of the creditors’ reach. In Nebraska, property or money of a limited liability company cannot be seized by creditors in order to pay off the personal liabilities or debts of the owners of the limited liability company (Gless, 2008). If Adam opts to change his company to a limited liability company, Benhur as well as other creditors to the business will have to be aware of these rights and limitations in case the business acquires this legal status. However, there are other means through which creditors may use to go after the company while trying to recover the debts personally owed by the owner of the business (Gless, 2008). The state of Nebraska allows personal creditors of a LLC owner to get a charging order that is drawn against the membership interest of the owner. This is an order that is given by a court of law directing the business manager to authorize payment to the business owner’s personal creditor any profits or income that would otherwise have been distributed to the debtor-member. It should however be remembered that creditors