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Frequently Asked Questions Regarding Assignments for the Benefit of Creditors also known as General Assignments or ABC's

1. What is an Assignment for the Benefit of Creditors?

2. What is the difference between a Chapter 7 Bankruptcy and Assignment for the Benefit of Creditors?

3. What are the advantages of an Assignment for the Benefit of Creditors in comparison to a bankruptcy?

4. Who is an eligible candidate to make an Assignment for the Benefit of Creditors?

5. What is required to make an Assignment for the Benefit of Creditors effective?

6. What steps are necessary to the making of an Assignment for the Benefit of Creditors?

7. Can the assets transferred in an Assignment for the Benefit of Creditors be sold in a manner to preserve their ongoing value?

8. What should be expected of an Assignee, such as Equitable Transitions, once the Assignment for the Benefit of Creditors has been made?

9. How do I began the process of making an Assignment for the Benefit of Creditors?

10. What can I expect will happen once the General Assignment is made and how long will it take?

11. Does an Assignment for the Benefit of Creditors require general creditor consent?

12. Does my secured creditor have to consent to the General Assignment?

13. Can you explain to me how the assets of the business can be transferred through a General Assignment to another company?

14. Are there any circumstances when a General Assignment doesn't make sense?

15. Can't creditors file an involuntary bankruptcy if an Assignment for the Benefit of Creditors is made?

16. What happens to the Company making the General Assignment?

17. Do I, as a principal of the Assignor, have any input or control over the General Assignment process?

18. What happens to a principal who has guaranteed debt of the Assignor after the General Assignment is commenced?

19. What happens to license and franchise agreements in a General Assignment?

20. What are the risks to a buyer of assets from a Assignee under a Assignment for the Benefit of Creditors?