Category Archives: ABC: Assignment for the Benefit of Creditors

Business entities with assets might consider this state court remedy to liquidate their assets. As I take down my website, this information may be of assistance for businesses to consider. Assignment for the Benefit of Creditors (“ABC’) is an alternative to a chapter 7 corporate or LLC bankruptcy. An “ABC” is filed in a state court of Florida including in Broward, Miami-Dade andPalm Beach County. The option of an assignment for the benefit of creditors should be analyzed by comparing a chapter 7 corporation bankruptcy. A chapter 7 business bankruptcy is filed in the United States BankruptcyCourt. A chapter 7 trustee is appointed to take possession and liquidate the assets of the business. The trustee is selected randomly from a panel of approved chapter 7 trustees. The trustee will investigate any fraudulent transfers or preferences including benefits paid from the business to any of its principals or their relatives. The…
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