PARTNERS OBLIGATIONS TO PERSONAL AND PARTNERSHIP CREDITORS; THIRD

PARTIES

A. TO HAVE HIS PARTNERSHIP INTEREST CHARGED FOR PERSONAL DEBTS

ART. 1814. Without prejudice to the preferred rights of partnership creditors under
article 1827, on due application to a competent court by any judgment creditor of a
partner, the court which entered the judgment, or any other court, may charge the
interest of the debtor partner with payment of the unsatised amount of such
judgment debt with interest thereon; and may then or later appoint a receiver of
his share of the prots, and of any other money due or to fall due to him in respect
of the partnership, and make all other orders, directions, accounts and inquiries
which the debtor partner might have made, or which circumstances of the case
may require.
The interest charged may be redeemed at any time before foreclosure, or in case
of a sale being directed by the court, may be purchased without thereby causing a
dissolution: (1) With separate property, by any one or more of the partners; or (2)
With partnership property, by any one or more of the partners with the consent of
all the partners whose interests are not so charged or sold.
Nothing in this Title shall be held to deprive a partner of his right, if any, under the
exemption laws, as regards his interest in the partnership. (n)
Application for a charging order after securing judgment on his credit.
While a separate creditor of a partner cannot attach or levy upon specic
partnership property for the satisfaction of his credit (Art. 1811[3].) because
partnership assets are reserved for partnership creditors (Art. 1827.), he can
secure a judgment on his credit and then apply to the proper court for a
charging order, subjecting the interest of the debtor partner in the
partnership (Art. 1812.) with the payment of the unsatised amount of such
judgment with interest thereon with the least interference with the
partnership business and the rights of the other partners. By virtue of the
charging order, any amount or portion thereof which the partnership would
otherwise pay to the debtor-partner should instead be given to the judgment
creditor. This remedy is, however, without prejudice to the preferred rights of
partnership creditors under Article 1827. It means that the claims of
partnership creditors must be satised rst before the separate creditors of
the partners can be paid out of the interest charged. (See Art. 1839[8].)
Availability of other remedies. In providing for the charging order above
described, Article 1814 seems to have made this an exclusive remedy so that
a writ of execution will not be proper. (Teller, op. cit., pp. 55-57.) The court
may resort to other courses of action provided in Article 1814 (i.e.,
appointment of receiver, sale of the interest, etc.) if the judgment debt
remains unsatised, notwithstanding the issuance of the charging order. A
similar procedure is established by Article 1862 as to private creditors of a
limited partner.
REDEMPTION OR PURCHASE OF THE INTEREST CHARGED:
Redemptioner. The interest of the debtor-partner so charged may be
redeemed or purchased with the separate property of any one or more
of the partners, or with partnership property but with the consent of all
the partners whose interests are not so charged or sold.
Redemption price. In an ordinary sale, the price of the thing sold
theoretically represents its market or actual value. This is not true in a
foreclosure sale where mere inadequacy of the price obtained
 (normally the amount of the creditors claim) at the sheriffs sale is not
material because the mortgagor is given the right to redeem. By the
same token, the value of the partners interest in the partnership has
no bearing on the redemption price which is likely to be lower since it
will be dependent on the amount of the unsatised judgment debt.
Right of redeeming non-debtor partner. For this reason, the
redeeming non-debtor partner, it is believed, does not acquire absolute
ownership over the debtor-partners interest but holds it in trust for
him consistent with principles of duciary relationship.
RIGHTS OF A PARTNER UNDER EXEMPTION LAWS
Under Article 1811, a partner cannot claim any right under the
homestead laws or exemption laws when specic partnership property
is attached for partnership debt. With respect, however, to the
partners interest in the partnership as distinguished from his interest
in specic partnership property, the partner may avail himself of the
exemption laws after partnership debts have been paid. A partners
interest or share in the partnership is really his property. (Art. 1812.)