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.