Assignment for the Benefit of Creditors

 

 An Assignment for the Benefit of Creditors, commonly referred to as an ABC, is a non-bankruptcy alternative to eliminate debt. ABC’s are governed by state statute and therefore vary from state to state. Title of the assets belonging to the debtor is vested in a trustee for the benefit of all of the debtor/assignor’s creditors. The assets are liquidated to pay the claims of creditors under a statutory priority scheme. The ABC process is preferred over the bankruptcy process in certain circumstances and you will be advised of whether this is a possible alternative under your particular circumstances when you meet with one of our attorneys.