Illinois Assignment for the Benefit of Creditors

Business Bankruptcy > Illinois Assignment for the Benefit of Creditors

An assignment for the benefit of creditors is a formal, voluntary transfer of all or substantially all of business’ assets to an assignee, in trust, to apply the property or its proceeds to the payment of debt.  The assignee for the benefit of creditors serves essentially as a non-judicial trustee has fiduciary obligations to creditors.  No court intervention is typically involved in an assignment for the benefit of creditors.  The assignment for benefit of creditors usually is faster and cheaper than a formal bankruptcy case, particularly when the assets involved might be liquidated quickly.  A valid assignment for the benefit of creditors places the debtor’s property in the hands of the assignee and out of the reach of the debtor’s creditors. For more information about assignments for the benefit of creditors, see this link: https://www.iicle.com/SmartBooks/pdfs/1384/BusBank-Ch7.pdf

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