Assignment For The Benefit Of Creditors
An Assignment for the Benefit of Creditors (“ABC”) exists under Florida law and is generally employed for the liquidation of an insolvent business. An ABC involves the assignment of all of a company’s assets to a third-party assignee, who is selected by the debtor.
In many ways an ABC is analogous to a Chapter 7 bankruptcy, however, unlike a Chapter 7, there is no automatic stay enjoining creditors from pursuing individual collection efforts and the assignee is not granted special authority to avoid and recover certain pre-assignment transfers.
If a debtor is a suitable candidate for an ABC, this can be an efficient technique to avoid some of the negative aspects of bankruptcy. The attorneys at FurrCohen can help an insolvent debtor develop a plan to maximize the return for creditors, while limiting the negative aspects of bankruptcy.
Robert Furr and Marc Barmat are experienced fiduciaries who are also available to serve as an assignee for an insolvent debtor.
Contact Us Regarding An ABC Today
For more information or guidance on matters related to an ABC, get in touch with us today.
Please contact our Boca Raton, Fl office to speak with our bankruptcy lawyers, call 561-395-0500 or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.