Assignments for Benefit of Creditors (ABC)

An Assignment for Benefit of Creditors (ABC) is a legal process where a financially struggling individual or business transfers their assets to a designated person, known as an assignee, who manages the assets to pay off creditors. It serves as an alternative to bankruptcy, allowing debts to be settled in an orderly manner. The assignee liquidates the assets and distributes the proceeds to creditors according to legal priorities, aiming to maximize recovery. This process can help avoid lengthy court proceedings and offers a less stressful way to resolve financial difficulties.