Assignment for the Benefit of Creditors

An Assignment for the Benefit of Creditors is a business liquidation device available to insolvent debtors. In effect, it is a contractual agreement under which a company’s assets are transferred in trust to an assignee, who is a fiduciary to the company’s creditors. It is one method of liquidating a business without putting the debtor at odds with his or her creditors.

In practical terms, choosing to engage in an Assignment for the Benefit of Creditors can allow a company’s owners, management, and directors to move forward with day-to-day business and transfer the complexities of closing out their company to the third party assignee.

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CMBG Advisors’ team of seasoned professionals is highly experienced in all facets of Assignment for the Benefit of Creditors, having served as assignee for numerous companies.