Assignment for Benefits of Creditors (ABC’s)
California Bankruptcy Attorneys
Guidance through Bankruptcy Alternatives
Filing for bankruptcy is often a decision made when a business is irretrievably insolvent. However, the bankruptcy lawyers at Ringstad & Sanders, LLP, evaluate the business, its assets and liabilities, and the underlying cause of financial distress in order to assess whether alternative means for liquidating assets are available, such as an Assignment for the Benefit of Creditors. The firm has extensive experience representing debtors and bankruptcy creditors in assignment procedures. The skill and experience of the firm can be retained by contacting the California business liquidation lawyers at Ringstad & Sanders, LLP.
What is an Assignment for the Benefit of Creditors?
An Assignment for the Benefit of Creditors (ABC) is a California state law alternative to liquidation under Chapter 7 bankruptcy law. In an assignment, the business (the assignor) transfers all of its assets and liabilities to another individual or business (the assignee). The assignee then proceeds to sell or liquidate the assets in a commercially reasonable manner. This procedure is commonly used to facilitate a sale of a distressed business entity to another business entity.
The law office of Ringstad & Sanders, LLP, is experienced in implementing Assignments for the Benefit of Creditors. The lawyers guide both assignor and assignee through this liquidation process. The firm effectively structures the assignment contract in advance, obtains secured creditor approval when necessary, and facilitates the assignment procedure.
What are the Benefits of ABC’s?
An Assignment for the Benefit of Creditors is an appealing option for debtors because it may serve to better preserve the going concern value of the assets involved, and achieve resolution faster and more economically than a traditional bankruptcy liquidation. It is often attractive for secured creditors because an assignment saves the creditor the time and expense of proceeding with a foreclosure sale or suffering the time delays often associated with a bankruptcy liquidation.
The bankruptcy lawyers at Ringstad & Sanders, LLP, recognize that filing for bankruptcy may be a timely and costly process. Therefore, the firm provides representation to clients through Assignment processes. To retain the assistance of the experienced Newport Beach bankruptcy attorneys, contact Ringstad & Sanders, LLP.