Assignments for the Benefit of Creditors FAQs

What is an assignment for the benefit of creditors?
The transfer, by agreement, of the legal and equitable title to a debtor's property to a third-party.

Who is the assignee?
The third-party to whom legal and equitable title of the debtor's property is transferred.

Is an assignment a voluntary proceeding?
Yes.

Is court approval required for a sale?
Not typically.