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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.

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Law Library - American Law and Legal InformationFree Legal Encyclopedia: Approximation of laws to AutopsyAssignment for Benefit of Creditors - Types, Trust Law, Creation, Deficiency, Legality Of Assignments