General Assignment for Benefit of Creditors

Summary

This general assignment for the benefit of creditors template is for use by a troubled company that is faced with insolvency but wishes to avoid the time and expense associated with a bankruptcy filing. This template includes practical guidance and drafting notes. This template can be modified, depending on the particular facts and circumstances of the case, to provide for a partial assignment transferring only a portion of the company's assets or excluding certain assets. Counsel should keep in mind that there may be additional state law requirements which must be fulfilled in order to execute the assignment. Counsel should review the filing and notice requirements for the jurisdiction that they are in to ensure that any requirements are met. For a full listing of key content that provides an overview of several out-of-court restructuring options, including workouts, and liquidation alternatives to filing for bankruptcy protection, see Out-of-Court Restructuring and Liquidation Alternatives Resource Kit. For resources on assignments for the benefit of creditors, receiverships, and sales under Article 9 of the Uniform Commercial Code (UCC), see Non-Bankruptcy Alternatives State Law Comparison Tool Resource Kit. For more information, see Assignments for the Benefit of Creditors and Assignments for the Benefit of Creditors Checklist and Knowing Your ABC'S: Practical Alternatives to a Business Bankruptcy Filing Checklist.