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Assignment for Benefit of Creditors
Bankruptcy is not the only option for
companies that face insolvency. Florida
companies can use the state's
Assignment for the Benefit
of Creditors (ABC) statute as an
alternative to bankruptcy.
Instead of letting a
bankruptcy trustee sell a company's assets
in order to pay off creditors, the Assignment
for the Benefit of Creditors statute allows
businesses to transfer assets to an assignee.
This person or organization liquidates the
assets and divides the proceeds among the
creditors in order of priority as set forth in
the Florida Statutes. The assignee is
responsible for managing the assets
appropriately during the process of liquidation.
Liquidating assets through
Assignment for Benefit of
Creditors can be less expensive and quicker
than a bankruptcy. It also allows the company to
control the timing of the asset sales. It even
allows the assignee to sell the business as a
going concern, if that is in the best interests
of the creditors.
Thomas L. Abrams in
Fort Lauderdale is available to represent
participants in an ABC
proceeding, including:
» The company
that needs to be liquidated
» The assignee
who is responsible for managing and selling the
assets
» Individuals or businesses who wish
to purchase liquidated assets or the company
itself
» Creditors who are seeking payment of
debt through the ABC process
We will
evaluate your specific circumstances, needs and
goals and advise you whether an
Assignment for Benefit of
Creditors proceeding makes sense in your
case.
To learn if we can be of
assistance, please contact the lawyers of Thomas
L. Abrams, in Fort Lauderdale, Florida. Thomas
L. Abrams represents clients throughout the
South Florida area (Broward, Miami-Dade and West
Palm Beach Counties) in ABC cases and all
aspects of insolvency matters.
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