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Personal Bankruptcy > Small Businesses in Bankruptcy > Assignment for the Benefit of Creditors

Assignment for the Benefit of Creditors

Bankruptcy is not the only way to solve business problems.  Sometimes, you can assign your corporation’s assets to a private trustee, called an assignee.  The assignee will liquidate your assets and pay the proceeds to your business’ creditors in accordance with their respective priorities.  You might be able to work out financing for a new company or enterprise to acquire the assets from the assignee at the assignee’s sale.  The purchaser at the assignee’s sale is not liable for the former enterprise’s debts unless it is deemed to have successor liability.  Naturally, we would try to avoid any imposition of successor liability in the case of an assignee’s sale.

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