Assignments for Benefit of Creditors

An Assignment for the Benefit of Creditors (ABC) is a legal process where a financially distressed individual or business transfers their assets to a third party, called an assignee, to liquidate them and pay off creditors. This process is an alternative to bankruptcy and allows for a more straightforward settlement of debts. The assignee manages the sale of assets and distributes the proceeds to creditors, following a specific legal procedure. It aims to maximize the value of the assets while ensuring creditors receive a fair settlement, and it can be a quicker and less costly solution than filing for bankruptcy.