Assignments for the Benefit of Creditors - A Bankruptcy Alternative
1 hour 30 minutes
Recognize when the use of an assignment may be advantageous versus the debtor turning to a liquidation under Chapter 7 of the bankruptcy code.
Receive an overview of the basics to general assignments for the benefit of creditors, a state law alternative for the liquidation of a distressed business that while long available under state laws, has had little use outside of states such as California, Illinois, Florida and Massachusetts. States such as Washington and Minnesota have enacted new statutory schemes addressing the use of ABCs (as receivership actions) and other states are considering new statutory schemes as well.
The fiduciary nature and responsibilities of the assignee will be covered, as will the advantages and disadvantages to the process as compared to bankruptcy. Gain a better understanding of the nature of general assignments and when the use of an assignment may be advantageous versus the debtor turning to a liquidation under Chapter 7 of the bankruptcy code.
• You will be able to review the basics of what is an assignment for the benefit of creditors.
• You will be able to discuss creditor alternatives to the assignment.
• You will be able to describe benefits and advantages of assignments to bankruptcy.
• You will be able to explain the recovery of preferential transfers under state law and preemption issues.