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Assignment for Benefit of Creditors

Types, Trust Law, Creation, Deficiency, Legality Of Assignments



The voluntary transfer of all or most of a debtor's property to another person in trust so that he or she will collect any money that is owed to the debtor, sell the debtor's property, and apply the money received to the payment of the debts, returning any surplus to the debtor.



The debtor is the assignor, the transferor; and the person who takes legal title to the property is the assignee.

FURTHER READINGS

Buckley, Mike C., and Gregory Sterling. 2003. "What Banks Need to Know about ABCs." Banking Law Journal 120 (January): 48–58.

Kupetz, David S. 2001. "Assignment for the Benefit of Creditors: Exit Vehicle of Choice for Many Dot-Com, Technology, and Other Troubled Enterprises." Journal of Bankruptcy Law and Practice 11 (November-December): 71–82.

Additional topics

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