Assignment for Benefit of Creditors

There are three types of assignments that are categorized according to the limitations imposed upon the arrangement. A general assignment is one involving the transfer of all the debtor's property for the benefit of all his or her creditors. A partial assignment is one in which only part of a debtor's property is transferred to benefit all the creditors. When property is assigned to benefit only designated creditors, it is a special assignment.

The assignment results in the property being beyond the control of the debtor. It is different from agency arrangements, pledges, or mortgages.